The New Jobs Pay Poorly

The Fiscal Times reports on the job market and wage levels:

The nation celebrated an important economic milestone recently when the Labor Department reported that the economy had recouped the 8.7 million jobs lost in the Great Recession.

In May, payroll employment exceeded the pre-recession peak of 138.5 million jobs for the first time in nearly five years of economic recovery. But there was a hitch: The lost jobs were much better paying jobs than those that replaced them.

The jobs that vanished in manufacturing, construction, retail trade and other sectors paid an average annual wage of $61,637, according to a new U.S. Conference of Mayors analysis. By contrast, the replacement jobs, in health care, the food and hotel industry and the service industry, pay on average $47,171 per year, according to the report.

This isn't good news. Household income has declined by 3-5%. People with less discretionary income spend less, support the recovery less, buy fewer homes, cars, etc.