For The Unemployed, New Job Often Means A Pay Cut

Even as some of the nation's millions of unemployed start to find jobs, they're facing a stark reality -- the likelihood of accepting jobs with drastically lower salaries.

A Columbia University economics professor says the first jobs to emerge from a recession generally aren't well-paying ones.

Till Marco von Wachter says companies delay hiring for higher-paying jobs until they're confident the recovery will last.

And, as the unemployed compete for the few job openings available, employers face no pressure to raise wages.

An economic researcher says millions of unemployed workers' accepting wage cuts will likely stifle income growth for years.

He calls such wage depression the economic "scarring" of the labor force.

A Columbia University study on the early 1980s recession suggests those hired at lower wages in a tight job market tend to lag behind their peers for years.

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  • by Cactus Location: Strabane on Jan 10, 2010 at 04:07 PM
    B, are you trying to bankrupt Wal-Mart? If it were not for foreign goods they would not have anything to sell.
  • by B Location: NC on Jan 10, 2010 at 10:53 AM
    You are right Stan,we need to boycott all Chinese products.
  • by LW Location: Greenville on Jan 10, 2010 at 10:46 AM
    In other word Stan, our goverment have has commited TREASON.They have ruin this country. Don,t worry ,when enough people have had enough of this, the day of reckoning will come.When unemployment gets to 40 % people will wake up and make this country independent again. We have the resources to do everything in this country but greed corrupts these polticians. A person will will rise up like Ross Perot and "we the people " will vote and this TREASON will stop. We will start making our own goods again.
  • by Stan Location: Greenville on Jan 10, 2010 at 09:34 AM
    I was layed off in 2001,I gladly took a job paying $16,000 within a few weeks. It is good for people to take responsiblity for themselves instead of taking handouts from the gov't. The USA is shooting itself in the foot by exporting American jobs.

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