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Jobs Growing, but Salaries Saw Worst Rise Since 2010

USA Today (08/04/12) Tim Mullaney

Although the July unemployment report was generally favorable, gains in weekly incomes were the worst seen in almost two years. Taking inflation into account, production and non-supervisory employees have seen their weekly wages rise by just 3 cents since March 2010. “It’s not an economy that has a sign of momentum,” says Diane Swonk, chief economist at Mesirow Financial in Chicago. “Hours worked are not heating up, and wages are stagnant.” Employees have only weak bargaining power, and the industries adding the most jobs are the ones that traditionally pay low wages.