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The State of Working America, 2002-03 The labor market recession, which began in October 2000 remains with us. This recession marks the end of the long.

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Presentation on theme: "The State of Working America, 2002-03 The labor market recession, which began in October 2000 remains with us. This recession marks the end of the long."— Presentation transcript:

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2 The State of Working America, The labor market recession, which began in October 2000 remains with us. This recession marks the end of the long economic boom of the 1990s, which brought the first, broad-based increase in wages and incomes in decades. Low-wage workers especially benefited, as poverty rates dipped to historic lows. The 1990s also brought, however, substantial increases in household debt. The long-term trend towards increased hours of work continues and having a “working mom” remains a salient fact of American family life.

3 The 5.7% unemployment rate obscures the recession’s true depth Employment losses are steeper during this recession than in the early 1990s recession. –Higher unemployment has been more broadly shared by education and by gender. –Long-term unemployment has increased, especially for women workers. Slower wage growth is already occurring, especially among low-wage workers. –Expect to see increased inequality as a result.

4 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. The unemployment rate and its trend,

5 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Monthly payroll employment growth from unemployment’s low-point over the past three recessions

6 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percentage point change in unemployment during recession

7 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percentage point change in unemployment during recession for men.

8 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percentage point change in unemployment during recession: women.

9 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Nominal growth in average hourly earnings,

10 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Nominal earnings growth for men, comparing first halves of the year

11 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Nominal earnings growth for women, comparing first halves of the year

12 Full Employment: Love it when you've got it, miss it when it's gone… What is it? Close to full utilization of economic resources, including the un- and underemployed. Corresponds to unemployment rate in the neighborhood of 4%. Full employment led to sharp reversals in real wage and income growth; these gains were broad-based. Full employment is not, however, a cure-all (especially as it was short-lived). Racial, gender, and poverty gaps still exist. Inequality's growth slowed-an important source of poverty reduction-but it did not stop, as top continued to pull away.

13 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Growth in median family income over the 1980's and 1990's

14 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Ratio to white median family income by race/ethnicity,

15 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Low (20th percentile), middle (50th), and high-income (95th) growth

16 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Ratio of average family income of the richest 5% of families to the poorest 20%

17 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Real family income growth by quintile,

18 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Real family income growth by quintile,

19 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Changes in unemployment and income during recent recessions and recoveries

20 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Poverty rate,

21 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Change in poverty rates, , children under 6 by race/ethnicity

22 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Employment rates for mothers,

23 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Share of poor families with no work, by race/ethnicity,

24 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Income components, low income single mothers, Earnings Share Public Assistance Share

25 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Income of low-income single mother families, gross and net of work expenses,

26 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Real hourly wages of low-wage workers (20th percentile)

27 A little wealthier, much more indebted Over the 1990s, even as the stock market boomed, most Americans held little or no stocks. –By 1998, only 36.3% of households owned more than $5,000 in stock either directly or indirectly, through a 401k or mutual fund. –The bottom 40% saw their stock market holdings rise by only 1.1%. For many families, it was the run-up in debt that was most dramatic over the 1990s,

28 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Change in assets and liabilities of middle-wealth households,

29 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Home ownership by race

30 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Debt as a percent of personal disposable income,

31 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Consumer bankruptcies per 1,000 adults

32 Americans are working longer Over the 1990s, we saw a continuation of the trend toward longer hours of work. This was driven by the increase in women’s labor supply, and in particular, there are more working mothers. –Nearly three-quarters of all moms work. The average two-parent family has one worker at full-time and one at a little over 30 hours per week.

33 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Annual work hours of middle income, married-couple families with children

34 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Average annual hours worked among selected OECD countries, 2000

35 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Change in average annual hours worked, selected OECD countries,

36 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percent of workers with access to paid vacation, by industry, 1997

37 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percent of workers with access to paid holidays, by industry, 1997

38 Americans are more likely to be poor The United States has more children in poverty than in any other OECD nation. The exit rate from poverty is much lower in the United States than in other OECD nations. In the United States, entry into poverty is nearly twice as likely as other OECD nations to be associated with a new child in the family.

39 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percent of population remaining poor for at least three years, mid 1990s

40 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Child poverty is higher in countries with lower social expenditures

41 Source: Mishel, Lawrence, Jared Bernstein, and Heather Boushey The State of Working America Cornell University Press. Percent of wages replaced during maternity leave (weeks of paid leave)


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