America might be back to pre-Great Recession levels in terms of total number of jobs, but what kind of jobs are they? A new study from the US Conference of Mayors and IHS Global Insight gives the discouraging news:
In 2008 and 2009 the US economy lost 8.7 million jobs. By examining the sectors from which the jobs were lost, most notably manufacturing and construction, we find that the average annual wage in sectors (current wages weighted by number of jobs) where jobs were lost in the downturn was $61,637. A similar accounting of the jobs gains through 2014 q2 shows average wages of $47,171 per year.
This wage gap, at 23%, is significantly larger than that of the earlier recession and recovery, and implies $93 billion in lower wage income. Extensive job losses in high-wage manufacturing ($63K) and construction ($58K) sectors were replaced by jobs in the lower wage sectors of hospitality ($21K), health care ($47K), and administrative support ($37K).
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