© 2024 WYPR
WYPR 88.1 FM Baltimore WYPF 88.1 FM Frederick WYPO 106.9 FM Ocean City
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Accelerated Hiring in Higher Quality Jobs - 9/5/14

After years of producing generally low wage jobs, America’s labor market is now producing a better mix of positions.  Hiring has accelerated in segments such as construction, manufacturing and professional services in recent months – sectors with median wages of at least $20 per hour.  As reported by the Washington Post, nearly 40 percent of the jobs created over the past 6 months have been in high-wage industries compared with just a quarter during the latter half of 2013.  Meanwhile, the pace of growth in many low-wage segments has leveled off or even declined.

The improvement in job quality is most welcome.  Low-wage industries have generally been bouncing back from the recession more quickly, including retail and food services.  They now employ 2.3 million more workers than they did in 2007.  When averaged across all occupations, the median hourly wage has declined 3.4 percent since the recession after adjusting for inflation.  Even prior to the recession, the U.S. economy was experiencing what academics term job polarization, with growth at the high and low ends of the pay scale, but precious little movement in the middle.  Driving factors include new technologies that have dislocated many middle income workers and increased global competition.

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.