Stagnant Wages Depress Consumer Spending and Make U.S. First Advanced Nation in Job Dissatisfaction

Peter Mathews on KTLK AM 1150, the David Cruz Show: (11/19/2013) Growth in pay slows from 0.4 % in second quarter to 0.3 % in third quarter for workers.

Professor Mathews points out that the drop in the growth of wages and salaries of working Americans caused a drop in consumer demand. Since consumer demand accounts for two-thirds of the economy, this has blocked our full economic recovery from the Great Recession. Stagnant wages and salaries, and a lack of supportive social programs such as guaranteed paid vacation, quality, affordable child care, and paid parental leave, which are guaranteed in Europe, have also driven deep job dissatisfaction in the United States. Mathews noted that in an online poll of American and Canadian workers, 83 % said they will actively seek a new job next year. Another poll showed that 16 % of Americans find work unbearable and hate their jobs; compared to 12 % of the British, 10 % of Germans, 9 % of French, and 7 % of Canadians. The differences in these percentages are a result of generally higher wages, a greater voice for workers in the workplace, and extensive social programs which make life easier in the other advanced countries, compared to the U.S. If the U.S. economy is to flourish once again for the benefit of working Americans, engagement and job satisfaction must be the top concern for employers. In fact, employee dissatisfaction can disrupt productivity, damage worker morale, and hurt profits.     [Listen]   (10 min.)