Tight Labor Market Returns the Upper Hand to American Workers

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After losing ground for decades, low-wage workers have emerged from the pandemic with the upper hand. They are receiving perks like signing bonuses, bigger raises and competing offers that were previously reserved for white-collar employees.

Low-wage workers found something unexpected in the economy’s recovery from the pandemic: leverage.in fields requiring minimal education—including in restaurants, transportation, warehousing and manufacturing—combined with a shrinking labor force are giving low-wage workers perks previously reserved for white-collar employees. That often means bonuses, bigger raises and competing offers.

Average weekly wages in leisure and hospitality, the sector that suffered the steepest job losses in 2020, were up 10.4% in May from February 2020,, outpacing the private sector overall and inflation. Pay for those with only high school diplomas is rising faster than for college graduates, according to the Federal Reserve Bank of Atlanta.

“It’s a workers’ labor market right now and increasingly so for blue-collar workers,” said Becky Frankiewicz, president of staffing firm ManpowerGroup Inc.’s North America operations. “We have plenty of demand and not enough workers.” Lower-wage employers are boosting pay and offering gift cards to applicants who show up for interviews, along with sign-on and retention bonuses, and sometimes immediate employment before drug screenings and background checks, she said.

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It’s about time -people think it’s okay to pay workers minimum wage while their CEO’s makes millions. Employers, employees and customers are equally important. They need each other. One is not more important than the other.

Not before time

Good for them.

Until the “enhanced benefits” end.

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wow

That is win for Average Americans. They will make more hourly wage now.

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As they should!!! The pandemic truly peeled back the layers on the onion exposing the hypocrisy of 'essential workers' getting paid poverty wages!!!!

Yeah for decades. The corporations bought GOP politicians about 40 years ago decimating labor organizations. Consider this the catch up payback.

I hope I’m wrong but this feels like some sort of top signal for the fortunes of low-wage workers. Things will only get worse from here and they may get a rug pull if the Fed is too hawkish at the wrong moment here.

love watching you elitists at clutching your pearls as the peasantry refuses to work for pennies any more....omg!!! Management bonuses are threatened! Amassing generational wealth will take longer!!! Get the smelling salts!!! Mass vapors underway!!!!

Good. The way it should be.

This is capitalist damage-control propaganda. (Look at the source, lol)

thanks

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