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In Plain Sight

Low-Wage Jobs Crowding Out Fatter Paychecks

Millions of jobs lost to the recession have finally come back. But they're not paying nearly as well as they used to.

That's the conclusion of an analysis of Bureau of Labor Statistics data by the National Employment Law Project, which found that a large number of jobs created since the employment trough of 2010 pay less than the jobs they replaced.

The report found that lower-wage industries accounted for some 22 percent of job losses during the recession, but added back 44 percent of jobs created over the past four years. By contrast, higher-wage industries accounted for 41 percent of job losses, but only 30 percent of employment growth since the post-recession trough

Low-paying industries like food services and temp jobs accounted for 39 percent of job gains since the job market bottomed out.

The shift from higher- to lower-paying jobs comes as the economy enters its fifth year of one of weakest recoveries on record. Without stronger growth, there is little pressure on employers to raise wages, according to Michael Evangelist, author of the study.

"Low-wage workers are very easy to bring on and very easy to let go," he said. "So you need strong economic growth to boost these mid- and high-wage industries and increase hiring there."

While the overall level of U.S. employment has recovered, job growth has been weakest in some of the highest-paying industries, like construction. Meanwhile, job creation has been strong in lower-paying jobs in health care and food services,

The Senate is set to begin debate on a bill to raise the federal minimum wage to $10.10 an hour, in three steps, by 2016.

The measure would boost earnings from some 28 million of the lowest paid of American workers, who have been steadily losing ground to a variety of economic and political forces since the 1970s.