Looking at the BLS (Bureau of Labor Statistics) web this morning, it is interesting to note that most earnings over the March 2004 to March 2005period, have either fallen or been unable to keep up with the rate of inflation. Only a few jobs like mining and exploitation of energy resources showed a significant growth. Jobs in the plastics industries also paid more, which indicates increased pressure on petroleum production. This can only mean that we are going to be paying higher prices for energy, regardless of the final form, whether gas, coal, or electricity.
This also supports my contention that the American worker is earning less and headed toward third world earning power. Studying the data at the BLS web, http://www.bls.gov/news.release/empsit.t16.htm, it is clear, that the average wage for many jobs is actually decreasing. As more jobs are off shored, the competition for remaining jobs of the same level is increasing, strongly favoring employers. As workers leave existing jobs and replacements are hired, the starting wages for those jobs are lower.
Combining the earning with the inflation rate figures it soon becomes evident that unless you get a raise in excess of 5% you will only be marginally staying above the increased cost of living. If your earnings increased by less than 4% over the last year, you have gained no additional buying power. The inflation rate during that same period has grown from 1.74% in March 2004 to 3.15% in March 2005. The April 2005 figure was 3.51%. All this according to statistics provided by: "InflationData.com."
If your skill set is limited to those types of jobs that are earning less than last year, you can expect to have about 5% less buying power by the end of the year than last year, when you combine the wage stats and the inflation information. It is unlikely that any government intervention in the area of off shoring is going to be forthcoming, since there is little consensus on just what to do about the situation anyway. This means the American worker is going to have to be responsible for taking care of himself. So that brings us to the question: “What can I do about this situation?”
If you are in one of those jobs, which are shrinking in earning power, you have a couple of options. Good advice for everyone, regardless of the job, is continuing to learn and become more valuable to your employer. If you view your employer from an adversarial point of view, change that now. Right now, your employer is the means to acquire what you do have. Most employers do eventually reward extra effort, so by first partnering with your employer to improve your value, you improve your chances of at least maintaining your current level of buying power.
Taking the concept even further, if you continue to build your skills, and thereby your value to your employer, it is possible to be given more responsibility, which usually is accompanied by greater earnings. Talking with your employer about steps you can take to increase your value and be eligible for promotion, can be very beneficial, so long as you follow through on any action required, on your part.
Doing these things and getting no promotion, or improved wages, should be an indicator that your employer may not be growing the business. If this is the case, it may be time to begin discreetly, looking for a job where your chances are better. If you have been developing adaptable skills and abilities, which means they are transferable to other jobs, you also stand a better chance of improving your situation.
Other factors to look at are better opportunities if you relocate or improving your chances, by additional education. This may mean getting a degree, if you don’t already have one. You might also improve your skills and education in a closely related field, to the one in which you already work. Many jobs are being consolidated under one title, as employers continue to seek ways of cutting expenses to remain competitive.
The labor statistics cited earlier were for non-supervisory employees. If your current level of employment is above them, don’t think that you have it made, and none of this applies to you. As more jobs are being off shored, the number of supervisors and managers required in this country is also decreasing. The same steps recommended above apply to you also.
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