US Economic "Recovery": A Tale of Two Workforces

It's fascinating to explore perceptions of the US economic situation. Many people assert the country has "recovered" from the financial disaster called the Great Recession. Things "are better now," is the common phrase. Major league insiders repeat this message via the media. Rather than believe their own eyes, some folks uncritically repeat what these hired corporate hands and their political allies disseminate.

Graph: motherjones.com

Living in the New York area, with its high concentration of one-percenters and those culling favor with that group, one could be convinced of the "recovery" by the drumbeat of supposedly good economic news, and signs (such as filled restaurants) suggesting a surfeit of disposable income. However, the shadow of the "others" who "did not participate in the recovery" lingers like muggers lurking in society's dimly lit streets. The dimensions and human qualities of the non-participants are inconvenient and largely ignored by those enjoying the continued, relentless, and ruthless wealth transfer from the have-somethings to the have-plentys.

A story in today's San Jose, California-based Mercury News discusses the phenomenon of the have-less, and focuses on issues "older workers" face. The bleak news, quietly tucked away on a low readership national holiday weekend, is sobering. The article summarizes its points as follows:

• A recovery that for many older workers doesn't feel like one.
• Two-thirds of baby boomers between ages 55 and 64 who found work after losing it in the recession are making less than they did in their previous jobs.
• Their median salary loss is 18 percent, compared with a 6.7 drop for 20- to 24-year-olds.
• The re-employment rate for this older age group is 47 percent, and 24 percent for those over 65, versus 62 percent for 20- to 24-year-olds.
• Finding another job takes far longer, too: 46 weeks for boomers, compared to 20 weeks for young workers.

The Mercury News piece cites a recent report from the California Budget Project to deliver these unpleasant facts and conclusions. Economic "progress," the story notes

is complicated by a triple whammy of wage stagnation, a dramatic growth of low-wage jobs in hospitality and food services, and the staggering number of jobs lost in California during the recession -- 1.4 million, nearly half of which have yet to come back.

The California report could easily be repeated in nearly every other state in the Union. Does this sound like "progress" to you?