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Economists are proclaiming a bright future, thanks to an increase of 573,000 jobs since December 2009. We all have friends who might disagree but, hey, they can always get temp jobs working for the Census Bureau.
We have to ask how many of these new positions are "job jobs," with benefits, paid vacation and a salary commensurate with pre-recession pay scales. Let's take a peek at the relevant and some irreverent statistics and projections that might provide some insight.
THE GOOD NEWS
1. Merit Increase Budgets
Let's start with a bit of good news. Major employers anticipate a 2.8 percent budget increase for merit raises in 2010, as opposed to a 1.7 percent increase in 2009. The question is which employees will receive those raises.
2. Unfreezing Wages
Fifty-two percent of U.S. employers froze pay in 2009 for some or all employees, according to WorldatWork's latest salary budget survey. Happily, more than 50 percent of those surveyed plan to resume normal pay levels in some areas this year. Roughly seven percent will reinstate salaries across the board. Another 25 percent plan to prolong freezes into 2010.
3. Non-Cash Carrots
Employers seeking to motivate and reward employees are using a variety of inducements when in lieu of bonuses and raises. This includes career development opportunities; non-cash rewards and recognition; leadership training; flex options; and even carrots. Be honest: Wouldn't you rather have a plaque on the wall than no job at all?
4. 401(k) Match is Back
Roughly 35 percent of companies that cut back on 401(k) matches in 2009 are planning to increase their contributions this year.
5. Unemployment Benefits
Government extensions have kept unemployment checks rolling in for long-term unemployed workers. As an added benefit, recipients didn't have to pay incomes taxes on the first $2400 received and many who experienced a marked reduction in income were granted a greater benefit from the earned income tax credit.
6. Interns
Slave labor went out of fashion when the Department of Labor issued six criteria to determine when employers must pay interns.
7. Politicians
Wisely, the U.S. Congress voted against a pay raise this year. While members of congress enjoy healthy benefits, paychecks have risen a comparatively small average of $165,200 per year in 2007 to $174,000 in 2009. U.S. House representatives presently earn an average of $174,000, as compared to $168,000 per year in 2007.
While the president's salary went from $200,000 to $400,000 per year when George W. Bush took office (thanks to legislation signed into law by President Bill Clinton) President Barack Obama's salary holds steady at that $400,000 figure.
8. Unfreezing
As of January, only one third of employers surveyed by Towers Perrin plan to freeze or reduce hiring in 2010. That's down from 65 percent in 2009.
THE BAD NEWS
9. Median Income Down
The 2009 median American income was $27,590 per year, or $13.26 per hour, according to the U.S. Census Bureau. Just one year earlier, the median average was $42,270 per year and $20.32 per hour.
10. Minimum Wage Off Pace
The present federal minimum wage is $7.25, up from $5.15 a decade ago. When you put that in terms of 2010 dollars, however, the 1999 minimum wage was $6.59. Factor in the 28.31 percent cumulative increase in cost of living (a 2010 dollar equals $1.28 in 1999 cash) and you'll find hourly workers have lost a huge amount of ground in 10 years.
11. Tipped Employees Losing Ground
The federal minimum wage of $2.13 for tipped workers has dropped in value by 36 percent since 2007, when it was first instituted. Shrinking tips have further reduced take-home pay. That may explain why the poverty rate among tipped employees is three times that of the broader workforce and they're twice as likely to go without health insurance.
12. Fading Retirement
More than half of employers recently surveyed by Towers Watson said the recession has led to an increasing percentage of employees are working past their desired retirement age. Thirty-one percent expect it will continue trending higher. At east Walmart will never be short of friendly greeters.
13. High Tech Jobs Slow to Recover
U.S. technology companies have used a variety of tactics to control costs, primarily by freezing salaries; laying off employees; mandating unpaid time-off; and suspending 401(k) matches. The near future remains bleak for tech employees, as 58 percent of companies globally indicate hiring levels will remain flat or decrease over the next 12 months.
14. Corporate CEOs Experiencing Ups and Downs
In 2006, the total compensation package for the average chief executive officer in the U.S. was $12.03 million, including salary, bonuses and stock gains. That figure rose to a historical high of $16.27 million in 2007, with the bulk of increase coming from base salaries and bonuses. Surprisingly, that package dropped to $8.05 in 2009.
As of May 2010, however, an Associated Press analysis of companies in the Standard & Poor's 500 index revealed 85 percent of stock options given to CEOs last year are worth more than they were on the day they were granted. For some, the value jumped by a factor of 10 or more.
15. Female vs. Male CEOs
The average female CEO earns $83,000 to the male average of $104,000. PepsiCo's Indra Nooyi earns a package worth $10.8 million to run a company worth $105 billion. That's half the $20 million compensation collected by her male counterpart James Skinnner at McDonald's.
16. Professional Athletes
Professional basketball players are the highest paid athletes in the world, with an average salary in 2009 of $5.297 million. (Basketball? Really?) Milwaukee Bucks Michael Redd tops the list at $17 million.
The average Major League Baseball player earned $3.297 million in 2010, with New York Yankee's third-baseman Alex Rodriguez taking the lion's share at $33 million per year.
The highest-paid National Football League player in 2009 was Cincinnati Bengal Carson Palmer, with $16.166 million per year. The median salary in 2009 was roughly $770,000.
Just for fun, ESPN created a little widget that allows you to calculate how long it would take a specific athlete to earn your annual wage. Plug $20,000 into SalaryCrunch and you'll learn Eli Manning earns that amount in .02 games. It's fun for the whole family!
Sources:
The U.S. Bureau of Labor
Wikipedia
Forbes magazine
U.S. Census Bureau
The National Employment Law Project
MeasuringWorth.com
The Quarterly Summary of Industry Trends
Towers Watson
WorldatWork
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