Catherwood LibraryILR School

The frequently bandied-about wisdom these days is that the U.S. economy is returning to normal in terms of job growth, while wage growth remains average or stagnant – perceptions that may be misleading and incomplete. While it’s true that the economy has experienced the most consecutive months of job growth in history, the jobs being created reflect a change in the nature of the employment relationship. Previous economic recoveries usually signal increased growth in “standard full-time” positions; these jobs have actually had a slight decline. What’s risen post-recession is the number of “alternative” work arrangements – such as independent contracting and temporary work – that result in fluctuating work schedules and lack of benefits. While such work can be “full-time”, this type of employment has led to “full-time job seeking” where workers have to patch together the salary and benefits they need. Similarly, wage growth may appear to be depressed due to the growth in cheap labor and contracting jobs, and the retirement of high-wage employees from the work-force as Baby Boomers begin to retire. Continuously-employed individuals, who haven’t experienced job loss, have continued to earn higher wages.