We are hearing anecdotal references to job seekers being offered lower salaries and weekly wage earners being offered substantially lower wages. It is difficult to substantiate these claims although at the end of 2009 USA Today published an article suggesting that Wages could hit steepest plunge in 18 years.
It was also around this time that the state of Colorado announced that it will become the first state to lower its minimum wage since the federal minimum wage law was passed in 1938 and in March 2010 “Inside Higher Ed” reported that salaries have fallen for 32.6% of faculty.
Yet when we look at the average hourly earnings from the Bureau of Labor Statistics the rate has only varied by no more than 14 cents since October 2009. The Janco Associates, Inc. 2010 salary survey shows year on year salary changes as being almost flat.
Taking these statistics into account what should we believe? Are people being offered less money for initial base salary or are salaries flattening rather than in a decline?
Any comments are welcome.
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