What’s happened to the “Middle Class”?
According to the BLS cumulative inflation since 1970 is 500+%!
This is a series of Talent Stories from 2017 you may have missed.
I find much of this very disturbing, even shocking.
What are your thoughts??
According to the BLS cumulative inflation since 1970 is 500+% (more than 10% per year).
It now takes $641.73 to buy what $100 did in 1970, or 541.73% inflation!
This is not the Consumer Price Index (CPI) % we all hear and read about.
In my validity check, economists agree.
Most have pegged inflation at 10% ± since the ‘50s.
Is an inflation rate of 542% shocking to see on a page?
Unfortunately, the Harvard Business Review reports wages have only increased ± .2% per year (12.5% actual) for the same period of time.
This explains much of the erosion of the middle class….
People simply can’t afford middle class anymore!
The government reported CPI has been a result of statistical manipulation for half a century.
This is done to make inflation look acceptable and keep the CPI low, the basis for most wage increases;
However, THIS AS A HUGE U.S. TALENT/PEOPLE (WORKER) PROBLEM!!
Corporate profits and U.S. worker productivity are at historical all-time highs.
Yet, Economic Policy Institute reports indicate working wage increases have been systematically negated for profits!
The churn created by low wages and lack of opportunity costs the U.S. $1½ – 2 Trillion (2012 dollars) per year; and,
These statistics pertain to all but certain STEM and upper most corporate leadership, not just first line people.
This results in more and ever increasing restriction on budgets, wages, benefits, talent attraction and retention.
How much more profitable could businesses become if they really questioned the current employment status quo?
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Job dissatisfaction or churn isn’t always about $$, however, increasing wages and benefits is decades overdue.
Next: Google has a solution for the lack of talent?