In their newly released study, Economists at Northeastern University found that since the recovery began in June 2009 following a deep 18-month recession, “corporate profits captured 88 percent of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1 percent” of that growth.
The study, “The ‘Jobless and Wageless Recovery’ From the Great Recession of 2007-2009,” said it was “unprecedented” for American workers to receive such a tiny share of national income growth during a recovery.
According to the study, between the second quarter of 2009, when the recovery began, and the fourth quarter of 2010, national income rose by $528 billion, with $464 billion of that growth going to pretax corporate profits, while just $7 billion went to aggregate wages and salaries, after accounting for inflation.
The share of income growth going to employee compensation was far lower than in the four other economic recoveries that have occurred over the last three decades, the study found.
“The lack of any net job growth in the current recovery combined with stagnant real hourly and weekly wages is responsible for this unique, devastating outcome,” wrote the report’s authors, Andrew Sum, Ishwar Khatiwada, Joseph McLaughlin and Sheila Palma.
According to the Bureau of Labor Statistics, average real hourly earnings for all employees actually declined by 1.1 percent from June 2009, when the recovery began, to May 2011, the month for which the most recent earnings numbers are available.
The authors said another factor explaining the weak performance for aggregate wages and salaries was the slow growth in weekly hours during the recovery. At the same time, worker productivity has grown just under 6 percent since the recovery began, helping to keep employment down while lifting corporate profits, the study said.
Professor Sum noted that the aggregate wage and salary figures exclude employer contributions to benefits and payroll taxes, while they include bonuses, overtime, commissions and tips.
He said that nonwage benefits rose in real terms by $27 billion during the first seven quarters of the recovery. “These small gains were exactly offset by a similar $27 billion loss in real wages and salaries over the same time period based on newly released data from the Bureau of Economic Analysis,” he said. “It was a wageless and jobless recovery.”
The study called that $27 billion loss in aggregate wages and salaries during the seven quarters after the recovery began “the first ever such decline in any post-World War II recovery.”
The study said that of the previous recoveries since the 1970s, the recovery following the 2000-1 recession was next worst in terms of the share of increased income going to wages and salaries. The study found that 15 percent of income growth went to aggregate wages and salaries in the six quarters after the recovery began following that recession, while 53 percent went to corporate profits. The growth in national income can also go to net interest, rental income or proprietors’ income.
The story was very different for the recovery that began in 1991. In that recovery, 50 percent of the growth in national income went to wages and salaries during the first six quarters after the recession ended, while corporate profits actually fell by 1 percent during that period.
With regard to corporate profits, the report noted that the preliminary estimate for the first quarter of 2011 was $1.668 trillion, an increase of $465 billion of just under 40 percent since the recovery began.
“Aggregate employment still has not increased above the trough quarter of 2009, and real hourly and weekly wages have been flat to modestly negative,” the report concludes. “The only major beneficiaries of the recovery have been corporate profits and the stock market and its shareholders.”
Article based on: NYTimes.com
Tags: american workers, economic recovery, Northeastern University, recovery, united states
gutter screens available in the market. surface…
tension models are a type of gutter leaf guards that close the hole and leave a small opening which only allows the water to flow easily. this is possible because they have circular rims which are curved backwards so the debris…
about coverages and what you need to…
know.where do you get earthquake insurance?the law requires insurers that sell residential property insurance within the state of california to offer earthquake coverage to their policyholders. most of these california earthquake insurance policies are…
your competitors get many of their links….
go through the list and see if you can get some of the same ones they have.my personal favorite way to get back links is getting articles placed on niche related blogs. this is one way i have found that is…
in good hands. some attorneys have more…
experience in the field than others. this usually does make them better and more qualified at handling a specific case.the tampa, florida area does have qualified drunk driving attorneys. finding the best one is crucial to having the best outcome in…
they will keep all that is shared…
in confidence unless it will help with your defense. depending on your potential conviction, incarceration or worse, may hinge on your word.take every bit of advice your lawyer gives you very seriously. if your retainer advises that you should not spea…
of freedom have to hire the best…
defense lawyer they can pay for. the internet makes finding a defense attorney easy, but be sure to find one with a professional staff and one with the experience you need to effectively represent you. being arrested can be a traumatic…
a disease that most people have that…
manifests only at certain times when their body interacts with allergens. there are several times when you would be surprised that you react negatively to what seemed to be a simple occurrence or an object that has been around you for…
allergic reaction. at worst, allergies can be…
life-threatening. for common, seasonal allergies, many people use antihistamines and decongestants to get through the allergy season but they may not know very much about the medication they are consuming.of course, the best way to control allergy symp…
Great information…
This is great. Persons looked at your dream journal gratify when we are wordless. We are curious about this sort of qualities. An appreciate users recommend, and prize your precious time with this. Please keep updating. They may be incredibly cherished…
Great information…
This is exceptional. A particular watch these tips video so we are astonished. We are precisely curious about this sort of merchandise. Sole appreciate body guide, and profit doing in this. Please keep updating. They are remarkably reliable reports ben…
palms turned up. your elbows should be…
lightly pressing against the sides of your body. at this point move your left elbow in a straight line backwards, after that your right elbow, at the same time compressing both of your shoulder blades together then relax. duplicate this exercises…
you as quickly or efficiently as a…
local criminal defense attorney can, because he will not have the connections or local knowledge that an experienced las vegas, nevada criminal attorney will.you do have the right to defend yourself in a court of law and you do have the…
or higher tier quality. everyone must make…
sure that the glass is not too thin, and that it has the same exact dimensions of the previous one. failing to do this can lead to increased road noise, leaks, and a not-so-sturdy installation, which is as bad as having…
a hospital might have a support group…
for rheumatoid arthritis sufferers, but the internet also offers places such as forums and chat rooms for patients to share experiences as well.depression, anxiety and low-self esteem are the mental problems that occur most frequently in rheumatoid art…
Free Backlink!…
We loved your website so much we added it to http://www.usbhubreview.net/sites-we-like-2. Just fill in the offer and your backlink is permanent….
… [Trackback] …
[...] There you will find 77017 more Infos: moneyworldnews.com/2011/06/30/the-wageless-profitable-recovery/ [...] …
… [Trackback] …
[...] Read More here: moneyworldnews.com/2011/06/30/the-wageless-profitable-recovery/ [...] …
at a pretty nominal cost. hence, by…
saving on the overheads, they are able to set prices of the items they have to offer at lower figures than their respective values in local marketplaces.further to the aforesaid, another reason to go the virtual way is the convenience promised…
Recent Blogroll Additions……
[...]usually posts some very interesting stuff like this. If you’re new to this site[...]……
Loise…
[...]The Wageless, Profitable Recovery | Money World News[...]…
trauma cleanup…
[...]The Wageless, Profitable Recovery | Money World News[...]…
Awesome website…
[...]the time to read or visit the content or sites we have linked to below the[...]……
not an option, try having your bulldog…
sleep out in the living room with his bed and toys. if that plan fails, there are always earplugs. most people who have bulldogs, however, say that they do not mind the snoring, because this friendly, lovable dog has won their…
足球贴士论坛…
[...]The Wageless, Profitable Recovery | Money World News[...]…
how to get rid…
[...]The Wageless, Profitable Recovery | Money World News[...]…
Free Backlink!…
We loved your website so much we added it to http://www.usbhubreview.net/sites-we-like-2. Just fill in the offer and your backlink is permanent….
Great information…
This is certainly awesome. Scientists watch this approach levels and we are thunderstruck. We are precisely curious about this sort of whatever you may desire. Model appreciate your specific grocery store, and significance your precious time in this. P…
aaliis…
moncler mens vestpiece of clothing from a shop to another or on the net…
used cars for sale. choose a reliable…
dealer and pick a car that matches your requirements. finally, check for the actual inspection report to have a better idea on what exactly is being checked and reconditioned. also make sure that the vehicle identification number (vin) used cars on th…
You should check this out…
[...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……
Gems form the internet…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
abodes…
I simply could not depart your website before suggesting that I really enjoyed the usual info an individual supply on your visitors? Is gonna be back continuously to investigate cross-check new posts…
is to question all evidence. speaking with…
a drunk driving attorney, once you have been released from the city or county lock up, can mean the difference between a rushed and unsuccessful defense and a dismissal of all of the charges against you. the penalties of a dwi…
to build a successful defense present evidence…
for the defense including witnesses and evidence gathered from private investigatorshiring a tampa criminal attorney means your case will be managed at every stage. you will receive expert advice and knowledge about the nature of your case, the potenti…
GTA 5 cheats…
[...]we like to honor other sites on the web, even if they aren’t related to us, by linking to them. Below are some sites worth checking out[...]…
free psp…
[...]The Wageless, Profitable Recovery | Money World News[...]…
severity of the burn.tips to considerthere are…
a few guidelines to remember during the consultation. for instance, always review surgeon education, certifications, credentials, training and the number of procedures performed. also, inquire as to the location that the treatment will be performed and…
suit could also be a culprit when…
it comes to causing hot tub foam. while you do want to use laundry soap at times, others you will want to wash the suit without the use of laundry soap to keep the hot tub from foaming up on you….
if you are the modern kind of…
person, you can get designer taps for your kitchen and the trendy mixer taps for your bathroom.• you can also decide to get either dual flow taps or single lever taps. dual flow taps offer the cold and hot water on…
… [Trackback] …
[...] Read More Infos here: moneyworldnews.com/2011/06/30/the-wageless-profitable-recovery/ [...] …