[Livingwage] Fwd: Low-Wage Nation

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>Low-Wage Nation
>
>Economic Notes from Labor Research Association
>
>June 22, 2004
>
>http://www.laborresearch.org/story2.php/358
>
>Walmart is not alone, and together with other large
>service sector employers is defining the new industrial
>landscape and the structure of the U.S. working class.
>Although the portion of large companies in the U.S. has
>remained relatively stable over the past decade, the
>industrial composition of the largest companies has
>continued to shift dramatically from relatively high-
>wage, unionized industrials to low-wage, nonunion
>retailers.
>
>New data from the U.S. economic census and private
>research groups bears out the stability in terms of
>size but the shift in industry composition and its
>impact on wages:
>
>     *  The percentages of small, midsize and large
>     companies and the share workers they employ have
>     remained relatively unchanged over the past decade.
>     Most firms are small employers. Of the nation_s 5
>     million employers, 75 percent employ fewer than 10
>     workers. These companies account for 12.3 million
>     workers, or 10.7 percent of the total workforce of
>     115.1 workers.
>
>     * Large employers account for half of the
>     workforce. Only 3.5 percent of all companies employ
>     more than 500 workers, but this small percentage
>     represents 57.7 million employees. Only 930
>     companies employ 10,000 workers or more, but these
>     companies represent 31.4 million workers, or 27.3
>     percent of the workforce. The median number of
>     workers for a Fortune 500 company is 26,000.
>
>     * The shift in industrial composition among the
>     largest firms has depressed wages. The largest
>     employer in the country is now Wal-Mart Stores,
>     with 1.4 million workers. Wal-Mart_s workers earn
>     an average of $18,000 a year. Until Wal-Mart
>     emerged as the largest U.S. company three years
>     ago, General Motors held that spot. A General
>     Motors assembler earns three times more than a Wal-
>     Mart worker.
>
>     * The ten largest U.S. employers represent 4.4
>     million workers. Five of the ten are low-wage
>     retailers. McDonalds, the nation's second largest
>     employer, has almost half a million workers. Kmart
>     employs more workers than United Technologies.
>
>     * Wage growth is stagnant in large firms. The
>     proportion of workers with low income (less than
>     200 percent of poverty level) has declined in small
>     and midsize firms with fewer than 500 employees,
>     according to The Commonwealth Fund. But the
>     proportion of low-income workers at large companies
>     has remained the same - about 20 percent.
>
>     * Deunionization is occurring faster in large
>     companies. The unionization rate declined by one-
>     third in large firms between 1987 and 2001_a
>     greater decline than in small and midsize firms. In
>     2001, the proportion of large-firm workers who were
>     union members was lower than the proportion in
>     midsize firms of 100 to 499 workers, according to
>     The Commonwealth Fund study.
>
>     * The decline in manufacturing has been greatest in
>     the large firms. Between 1987 and 2001, the
>     proportion of workers in manufacturing jobs
>     declined by 2 percentage points in small firms, 8
>     percentage points in midsize firms, and 11
>     percentage points in large firms. Manufacturing
>     accounted for only 11.4 percent of private hourly
>     employment in the first quarter of 2004, down from
>     17.3 percent in 1990, according to the Bureau of
>     Labor Statistics.
>
>     * The change in industrial composition and the drop
>     in unionization has reduced benefit coverage. About
>     60 percent of the rise in both the proportion and
>     rate of uninsured workers nationally who are
>     employed by large firms can be attributed to the
>     decline in manufacturing jobs and unionization
>     rates, according to The Commonwealth Fund study.
>
>     * Average work hours are falling. As the shift away
>     from manufacturing to the service sector continues,
>     the average workweek has declined. All job growth
>     has been concentrated in industries that employ a
>     higher percentage of hourly and part-time workers
>     and do not commonly use overtime for hourly
>     employees.
>
>     * The 2001 recession and jobless recovery have
>     accelerated the shift to low-wage work. A new
>     survey of more than 1,000 workers by Rutgers
>     University found that nearly one-fifth have been
>     laid off since 2001. While 71 percent of these
>     workers have found new jobs, half of them are
>     earning less than they were before they were laid
>     off.
>
>     * The chilling effect on wage demands created by
>     layoffs is widespread. For workers who escaped
>     layoffs, one in three worked at a company where
>     layoffs occurred, according to the Rutgers study.
>     In the period after their coworkers were laid off,
>     45 percent experienced increased fear of losing
>     their own job.
>
>     * The Rutgers study found that 51 percent of
>     workers who are currently employed are nonetheless
>     very concerned about job security, up from 42
>     percent one year ago and nearly twice the share of
>     workers who said the same in January 2000.
>
>     * Among workers earning less than $40,000 a year,
>     almost two-thirds are very concerned about job
>     security. Ongoing anxiety about job security is a
>     primary factor in dragging down wages.
>
>© 2004 Labor Research Association
>
>_______________________________________________________
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