Sluggish Wage Growth in US – Not due to the mix of jobs being created EPI finds

There has been some discussion that the sluggish wage growth we’ve seen since the recovery began in 2009 is driven in large part by the mix of jobs being created, as if we have lower wages simply because the economy is adding more low-wage jobs. Earlier in the recovery there was likely some truth to this, as lower-wage sectors saw the first pickup in job growth. However, over the last year jobs have been created throughout the economy in high-, low-, and middle- wage sectors. The evidence suggests that the economy has been adding jobs in proportion to the rate that those jobs already exist in the economy…

In the first quarter of 2014, low-wage jobs were 25.7 percent of the private sector economy. Over the last year, 26.6 percent of low-wage jobs added were in low-wage sectors. That looks relatively proportional. It’s a similar story at the middle and high ends of the wage-sector spectrum. Jobs are being added relatively in proportion to their share; therefore, it doesn’t appear that low-wage job growth is leading to sluggish wage growth.

Chosen excerpts by Job Market Monitor. Read the whole story at  Sluggish Wage Growth Over the Last Year Is Not Due to the Mix of Jobs Being Created | Economic Policy Institute.