In a recent speech, Fed Chair Janet Yellen admitted that “the recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics.”
Some of those statistics are contained in the just-released Job Openings and Labor Turnover Survey (JOLTS). While there may have been 4.2 million new job postings in February, 300,000 more than in January, many of these are low-wage jobs (temp jobs in business services, food-service jobs, jobs in retail trade, and so on), many of them at or just above the minimum wage. And, even though they’re less-then-desirable jobs at less-than-desirable wages, there were still 2.5 unemployed workers for every job posting. So, given that reserve army of labor, employers have absolutely no reason to offer higher wages. Which is why the so-called quits rate—the number of job quits divided by total employment, a measure of the willingness of workers to leave their current jobs in search of new, better, higher-paying jobs—remained at 1.7, virtually unchanged over the last 4 years.
The economic statistics are thus clear: American workers have been jolted and they’re still waiting for their recovery.