One of the main effects of the recession on the job market was the elimination of a large number of moderate wage jobs such as office workers and manufacturers. This large reduction in decently paying jobs has been coupled with a rapid increase in the number of temporary or part-time positions. These jobs almost always pay less than permanent positions and the lack of cash flow associated with this trend is thought to be a contributing factor to the sluggish pace of the economic recovery.
According to Fed Governor Sarah Raskin, a full 25% of the jobs created during the recession have been temporary in nature. This coupled with a reduction in total wage increases, from 3.5% before the recession to 2%, have workers in a more unsure place than ever. The Fed Governor expressed her concern at this trend had contributed to the raise in the overall poverty rate to 15% this year. To read the coverage from ERE.net, click the link below.