1 Out of 4 Employed Americans Make Less Than $10/hour

McDonald's workers on strike, Paris (Photo credit: Tilemahos_E)

Low wage jobs have been a big part of the so-called recovery.  What they also signify is a more troublesome trend that continues to eat away at the middle class in this country.  I’ve noted that the per capita average income for Americans is $25,000 and many seem to be shocked when they hear how low this figure is. 

A recent presentation only reinforces this figure by discussing the number of working Americans in low wage fields.  The problem with having such a large portion of our population in low wage work is that as the cost of living goes up many of these people have a harder time providing for necessities like food, education, and also healthcare. 

Surprising or not, the nation has been seeing a massive divide between the working class and those at the top.  The low wage employment growth signifies a continuation of this trend. More...

Cost of Living Keeps Rising

Image by xcode via FlickrThe cost of living in the U.S. kept rising in September, led by continued increases in food and energy prices, posing another challenge for Americans struggling with a weak job market.

Rising prices for food, shelter and other necessities led to the first cost-of-living increase in Social Security benefits since 2009. The more than 60 million Americans who receive Social Security will see their checks increase by 3.6%, the government said, but the increase will largely be offset by higher medical-care costs.

Consumer prices last month rose a seasonally adjusted 0.3% from August, the third straight monthly increase, the Labor Department said Wednesday.

Separately, U.S. home building grew in September to the highest level in 17 months. The results, however, were driven by a more than 50% monthly increase in construction of multifamily homes with at least two units, a volatile part of the market. Construction of single-family homes rose by 1.7% from a month earlier.

The weak housing market is a key concern to economic policy makers, and Federal Reserve officials monitor the consumer price data for any signs of inflation. That's because higher prices eat into the purchasing power of many Americans already struggling to find a job or to get a pay increase. Fed officials need to calibrate their interest-rate policy so that it boosts the economy and jobs without spurring too much inflation. More...