The Wall Street Journal noted the increase in lower-wage workers' pay. The lowest wage earners, many between 16 and 24 and with only a high school degree, gained the most since the pandemic.
Hourly wage increases occurred for the lowest-paid segment of the workforce, which is less educated and younger than average.
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| Wage Growth by Age and Education |
While wage increases are commendable, these above-average wages have not kept up with inflation, as noted in the gap between nominal hourly pay increases and inflation-adjusted wage increases.
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| Real and Nominal Wage Gains |
The growing gap between actual and nominal wages is exacerbated by the nature of job growth. Many of these positions are concentrated in services sectors and trades that can be highly cyclical.
Moreover, outside of the service sector, the growth in jobs resides in manufacturing, mining, and wholesale. Many of these jobs require training or licenses to practice the trade. They also tend to be unionized.
Unless the government and the private sector take seriously the obligation to train and apprentice the next generation, these jobs will remain unfilled, and real wage growth will remain a ghost of the past.
Sharyn O'Halloran
January 22,2022
