We're essentially reaching an intersection between the cost of Chinese labor (steadily increasing as China's economy grows and their currency gains value) and US labor (depressed because we're still at 8% unemployment). If these workers still wanted to be paid $30/hour, those jobs would still be in China.
In December 2011 there was a similar article in the NY Times[0], which addressed the expansion of manufacturing jobs but had a much bigger focus on wages.
Unfortunately for those workers, wages won't go up until the US economy continues to improve and unemployment goes down. Until then that "just thankful to have a job" feeling will suppress labor wages in general. Last quarter, corporate profits reached a historic high even as wages reached their lowest-ever share of GDP[1].
Maybe I'm just raw from the hostile election season, but this has always been personally frustrating to me. Our private sector doesn't pay enough for the jobs it offers, yet any suggestion to have the government assist is considered "redistribution" or "socialism."
Sum[wages] / GDP is down because employers are finding ways of getting more output with fewer employees. I.e., Sum[wages] = (average wages) x (# of workers) is down because # of workers has decreased, not because wages have.
If wages had decreased, we would not have had a recession at all (according to Keynesian economics).
In December 2011 there was a similar article in the NY Times[0], which addressed the expansion of manufacturing jobs but had a much bigger focus on wages.
Unfortunately for those workers, wages won't go up until the US economy continues to improve and unemployment goes down. Until then that "just thankful to have a job" feeling will suppress labor wages in general. Last quarter, corporate profits reached a historic high even as wages reached their lowest-ever share of GDP[1].
Maybe I'm just raw from the hostile election season, but this has always been personally frustrating to me. Our private sector doesn't pay enough for the jobs it offers, yet any suggestion to have the government assist is considered "redistribution" or "socialism."
[0] http://www.nytimes.com/2011/12/30/business/us-manufacturing-...
[1] http://money.cnn.com/2012/12/03/news/economy/record-corporat...