Workers Make Less Now Than Before The Recession


income inequality feat 3:2American workers are making less than they did in 2007, before the financial crisis, according to new data from PayScale. Real wages have declined by nearly 7 percent since then. Meanwhile, the firm predicts just 0.8 percent year over year growth in wages in the final quarter of 2013, down from 1.7 percent in the previous quarter, meaning that wage growth is slowing rather than speeding up.

Annual Trends in Compensation for National (US)

National (US)
National (US) Forecast

At the same time, corporate profits have risen by 18.6 percent over the last year.

PayScale’s latest data comes in a long line of evidence that workers’ pay has been stagnating or falling in the wake of the recession, a trend that had already started even before the 2007 crash. Workers also make less than when the recession ended, and they suffered a “lost decade” of wage growth between 2000 and 2012 despite working harder and producing more. Their pay has remained flat since the 1970s.

Yet the rich have done better than the average American. CEO pay has shot up 127 times faster than worker pay for the past three decades. The top ten percent of income earners now take home the largest share of the country’s earnings ever recorded: 50 percent of all income. The rich have seen their incomes grow over the last three years but everyone else saw them decline.