Public Employee Press

The World of Work
Wages fall behind inflation

The country is four years into a so-called economic expansion, but the growth doesn’t show in workers’ paychecks.

Despite rising productivity, working people aren’t getting their fair share. Compared to a year ago, from July through September of this year, wages were 2.3 percent lower after inflation, which is now running at about 5 percent.

Government surveys show that real wages haven’t even risen by 1 percent a year between 1979 and 2003.

Causes include global downward pressure on pay, the drop in the real value of the minimum wage, labor-saving technology and the declining bargaining clout of unions.