Why Are There More Jobs and Lower Salaries? (And This Isn’t Even About Trump)
On behalf of The Kaufman Law Firm posted in Employment Law on Saturday, November 18, 2017.

US President Donald Trump has repeatedly declared that the unemployment rate has substantially decreased over the past year, but why is this happening and why are salaries going down?

Los Angeles alone is expected to add nearly 133,000 jobs by 2021, according to a recent report, which also showed that inflation-adjusted household incomes are 4.5 percent lower than they were in 1990.

And the trend could get even worse (but we will talk about it in a bit).
The report showed that household incomes have jumped by nearly two times since 1990 (from $34,965 in 1990 to $61,338 in 2016). But when inflation is taken into account, salaries are actually down 4.5 percent below the level 26 years ago.

Our Los Angeles employment attorneys here at the Kaufman Law Firm explain that the decreased salaries and bad inflation rate is evident during the holiday season, when Los Angeles residents tighten their belts and spend less on gifts, travel and other holiday-related expenses.

Not only are LA residents struggling with lower salaries as for 2016’s inflation rate, but also costs in various areas keep increasing. This is especially evident from high housing and rental costs in Los Angeles, healthcare costs as well as higher prices for consumer goods.

This forces people to travel less than they used to when the inflation rate was lower, and not buy certain products to avoid unnecessary costs.
But why is this happening?

Why are jobs going up, but salaries are going down?

An experienced employment attorney at the Kaufman Law Firm explains that education may be the main factor behind the more-jobs-lower-salaries phenomenon.

For decades, household incomes have been directly tied to levels of education in the country, and today’s situation is no exception. According to the same report, the median annual income for LA residents with a high school diploma was a little higher than $27,300 in 2016.

The median for employees with a bachelor’s degree, meanwhile, totaled more than $52,000 last year (nearly two times more). The situation becomes even less satisfying given that many people with lower levels of education settle for lower-paying clients.

Some do it because they have no choice, so they end up in low-paying jobs, such as telemarketing or food service, but others are tricked by employers who pay them considerably less than the state’s minimum required income.

How to battle a low salary in Los Angeles?

If the latter is the case, such employees should consult an employment attorney in Los Angeles and take legal action against low-paying employers that violate federal and state laws in California.

The more-jobs-lower-salaries phenomenon could also get worse given that telemarketing and food service jobs will be the first ones to be affected when automation (robots) replace human force, an event that could substantially skyrocket the unemployment rate across our nation.

If you believe that your employer is paying you below the state’s minimum required income in California, don’t hesitate to seek the legal advice of a Los Angeles employment attorney at the Kaufman Law Firm.

Our Los Angeles-based law firm has protected employees’ rights of thousands of clients all across California in the past 20 years and helped them win seven- and eight-figure settlements.

Consult our skilled employment attorney by calling our offices at 818-305-6457 or 866-278-2385 today to get a free initial consultation.

Share on: