How low income workers fight for poverty with the falling and rising wages

According to the Bureau of Labor Statistics, workers in Los Angeles experienced a 1.9% drop in wages in 2013. Statistics indicate average weekly wages plunged to $1,161 per week, or roughly $55,000 annually.

The post-recession employment landscape shifted dramatically in 2013. According to reports from the New Economic Policy (NEP), while unemployment declined, income inequality expanded at the same time.

One of the primary causes of falling real wages was the widespread acceptance of lower-paying jobs. During the recession, many individuals accepted positions paying significantly less than what their skills and experience warranted. Although unemployment dropped to 7.8% by the end of 2012, labor unions lost bargaining leverage amid high joblessness. While select corporations offered higher compensation to attract specialized talent, unequal wage distribution exacerbated broader income disparities.

Data compiled by the Economic Policy Institute (EPI) highlights that poor wage distribution disproportionately harmed middle- and low-wage workers. Even as corporate earnings recovered following the Great Recession, wage growth remained constrained for non-supervisory employees.

Workers across several major industrial sectors experienced sudden job losses and severe wage reductions:

Cities Experiencing Plunging Wages (4th Quarter of 2011 & 2012)

Statistical tracking revealed severe wage declines across numerous metropolitan regions:

Counties Experiencing Plunging Wages (4th Quarter of 2013)

By late 2013, wage declines extended into major industrial and commercial counties:

• Dallas County, Texas
• Orange County, Calif.
• Maricopa County, Ariz. (includes Phoenix area)
• Cook County, Illinois (includes Chicago)
• Harris County, Texas (includes Houston)

In response to persistent wage stagnation, several counties and states enacted legislation to raise minimum wages in 2013 and 2014. Key regions advancing minimum wage increases included:

• Miami-Dade County, Fla.
• Florida statewide measures
• King County, Wash.
• San Diego, Calif.

Recent News on Massachusetts Wage Hike Bill

On Thursday, June 19, 2014, President Barack Obama praised the passage of a major wage hike bill in Massachusetts. Under the legislation, the state's minimum wage was set to increase from $8 per hour to $11 per hour by 2017.

Commending Massachusetts lawmakers, President Obama stated:

"Under the leadership of Governor Patrick, Massachusetts joins a growing coalition of states, cities and counties that are doing their part to make sure no American working full-time has to support a family in poverty."

Public Impressions & Economic Arguments

The passage of the Massachusetts minimum wage bill elicited mixed reactions:

• Critics' Viewpoint: Opponents argued that mandatory wage increases could burden small businesses. They suggested that expanding the state's Earned Income Tax Credit (EITC) would be a more targeted mechanism to assist low-wage earners without increasing payroll costs for employers.
• Proponents' Viewpoint: Advocates strongly supported the wage floor. As one Barre Democrat lawmaker noted:

  "There should be no connection between the words working and poor. If you work hard for a living, you deserve to be compensated fairly and adequately."

Reports from the Bureau of Labor Statistics (BLS) provide periodic breakdowns of real earnings (weekly, monthly, and yearly) across the United States:

Real Average Hourly & Weekly Earnings

BLS reports showed real average hourly earnings plunging by 0.2% (seasonally adjusted from April to May), while real average weekly earnings dropped by 0.1%. Average workweek hours remained unchanged during this timeframe.

Over-the-Month Percent Change

Over a three-month period (March 2014 to May 2014), real average hourly earnings fell by 0.1% for production and nonsupervisory employees across the nation.

Over-the-Year Percent Change

Looking over a full twelve-month period (May 2013 to May 2014), real average hourly earnings increased slightly by 0.3%, matching the 0.3% increase in real average weekly earnings over the same span.

While minor annual gains occurred nationwide, regional economic shifts and localized wage drops underscored the persistent financial fight facing low-income American workers.