We learned this morning the US added an estimated 227,000 jobs in the month of January. Of course we have both sides taking credit for this impressive number. The Democrats say it is the result of President Obama’s policies and cite the “record setting” job creation under his watch. Republicans, especially the new President is taking credit for igniting enthusiasm from businesses and encouraging businesses to bring jobs back to America.
What nobody seems to want to talk about is the QUALITY of these jobs or more importantly how much each of them cost. According to the Department of Labor, the majority of the jobs added from 2009-2013 were in the $8-14/hr range. From 2013-2015 the majority of jobs added shifted to the $12-24/hr range. If we split the difference and assume the average job added was $16/hr, the jobs added paid about 40% less than those that were lost. Wages are gradually increasing, but at a rate far below what most people would consider “normal” or healthy.