The unemployed finding lower paying jobs
Payday cash may not be what it once was. David Becker of Wisconsin was laid off from his job in IT last year. Times have been difficult and he has been steadfastly looking for work. He finally found a job, but it was in Nevada and the pay was $ 25,000 less than his old position. Many unemployed people find themselves in the same position. They take jobs after months of searching, but often have to accept lower pay. Unemployed people that have been searching for employment over the last few months have been setting for smaller pay, just to get the security of an income again.
The new job market
In the recovering economy, one of the biggest problems is salary decline. Employers are starting to create new jobs, but being frugal with starting salaries, benefits, and incentives. Experts warn consumers that though there is research being gathered on the market, it doesn’t necessarily reflect the reality of what is happening. For example, the government reported that new jobs are being created. What they didn’t report was that those jobs are nowhere near the salary levels of pre-recessionary times. Those used to a $ 80,000 salary may have to be content with $ 50,000. That means less money to spend, less money going out into the economy. Marisa DiNatale, director at Moody’s Economy.com, said, “In most cases, it means a subdued expansion, for sure.”
The long-term effect of lower salaries
People who are hired at lower salaries tend to lag behind for a long time. Playing financial catch-up is difficult. For example, a Columbia University study showed that workers laid off during the recession of the 80s earned 20% less than workers who weren’t laid off, even two decades after they were rehired.
The amount of payday cash workers have today is being hampered by employers, but employers are not necessarily to blame. Just like anyone else, they are just as anxious to see what conditions are like and how quickly everything will get back to normal. DiNatalie added, “Employers are hiring, but cautiously. This is likely going to be the case for the next nine to twelve months.”
Still the change in salary isn’t stopping people from taking lower-paying jobs. April Moore, an unemployed worker who took a job for 25% less than her former salary, said “I wanted the immediate security.” After being out of work for so long, many job seekers are finding themselves in the same position. Anyone would prefer to have a job, as it makes them secure and still able to hold out for the job they really want.
What the future holds
Despite the change in salary, there is still hope for the job market. Traditionally, conservative pay is an offshoot of any decline in the market. Economics professor at Columbia, Marco Von Wachter, said, “The first jobs to emerge from a recession typically are not well-paying ones.” The payday cash might be less, but there are still signs the market is recovering. This is a good sign that the recession is ending and recovery is beginning to take place.
