Wage cuts hit millions of US workers
Once the election is safely over, the two parties can drop their populist phrases and their pretense of intransigent hostility and get down to business.
According to a report by the US Bureau of Labor Statistics, released Friday, millions of American workers who lost their jobs after the Wall Street crash of 2008 have failed to find work, while millions more have gone back to work only after taking substantial wage cuts.
According to the BLS, some 12.9 million workers were displaced from their jobs between January 2009 and December 2011. The BLS study focused on those who had lost jobs they had held for at least three years, who comprised just under half the total, some 6.1 million workers.
Of these 6.1 million workers, 27 percent were still unemployed but looking for work, while 17 percent have stopped looking for work, effectively dropping out of the labor force. Of the 56 percent who had found new jobs, slightly more than half took jobs that paid less than their old jobs. For those who took new jobs with pay cuts, the majority lost 20 percent or more compared to their previous wages, on top of the loss of earnings due to part-time work or reduced overtime.
All told, only 1.1 million out of the 6.1 million workers had been rehired at full-time jobs paying as much or more as they earned before the crash. In other words, of the workers hit hardest by the slump, barely 15 percent have been able to regain a position comparable to what they lost.
There is the starkest contrast between these figures, which give a glimpse of the mass suffering and hardship in the working class, and the conditions facing corporate America, where most large companies are enjoying bumper profits, stock prices are back to the levels before the crash, and CEO salaries and perks have broken all records.