Employers Living a Fantasy?

canalEmployers Living a Fantasy?

Low-Wage Workers Feel Worse Off Now Than During Recession: Survey

The survey revealed that many people at the lowest rung in the workplace view their jobs as a dead end. Half were “not too” or “not at all” confident that their jobs would help them achieve long-term career goals. And only 41 percent of workers at the same place for more than a decade reported ever receiving a promotion.

Yet 44 percent of employers surveyed said it’s hard to recruit people with appropriate skills or experiences to do lower-wage jobs, particularly in manufacturing (54 percent). While 88 percent of employers said they were investing in training and education for employee advancement, awareness and use of such programs among the lower-wage workers was only modest.

Although President Barack Obama made it a national goal to “equip our citizens with the skills and training” to compete for good jobs, the survey shows a U.S. workforce that has grown increasingly polarized, with workers and their bosses seeing many things differently.

Seventy-two percent of employers at big companies and 58 percent at small ones say there is a “great deal” or “some” opportunity for worker advancement. But, asked the same question, 67 percent of all low-wage workers said they saw “a little” or “no opportunity” at their jobs for advancement.

Low-Wage Workers Feel Worse Off Now Than During Recession: Survey

 

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Is Tipping Necessary?

005Is Tipping Necessary?

Political Animal – Why you should (still) tip generously: a response to Michael O’Hare

Yes, I agree that if tipping were suddenly banned, the likely result is that markets would adjust to some extent, via increases in restaurant wages and prices. Unlike Michael, though, I’m not so sanguine that labor market in the restaurant industry works well enough that workers would entirely make up in wages what they would lose in tips. In case you haven’t noticed, the magic of the market really is not working so well for most wage earners. Productivity continues to soar but nearly everyone’s wages are stagnating or declining, and low-wage earners like restaurant employees are doing worst of all. This economy is a catastrophe and workers, especially those at the lower end of wage spectrum, have precious little bargaining power.

If tips were banned, I have every expectation that employers would opportunistically enact the equivalent of wage cuts, by refusing to make up in wages what workers would lose in tips. After all, what would stop them? The all-powerful labor unions? The many strict, scrupulously enforced labor laws that workers in this country enjoy?

Political Animal – Why you should (still) tip generously: a response to Michael O’Hare

 

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