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« You Are Not Worthy: 7th August - The Recession Diaries | Main | Try Your Hand at Stimulus - the Fun Way! »

August 09, 2009

Comments

Mack

Not to forget those who have had their wages cut the most, but are completely excluded from the statistics! Those made unemployed / redundant.

Presumably they are excluded because they're focused on employer costs and not employee standard of living?

Now that unemployment is higher I imagine new any hires will be offered less than they otherwise would have been too.

ultram tramadol

Well i hope the issue of unemployment will resolve soon. It was more painful when you are jobless, right?

Michael Taft

Yes, Mack, there is a probability that new entrants will get less than the going rate - with the probably exception of those enterprises covered by collective trade union agreements.

Tipster

Not related to the post -- I am using this in the absence of an email address!

I could be way off, but I imagine that the games at http://www.dreamscape.com/rvien/ might interest. For instance, the Keynes game is at http://www.dreamscape.com/rvien/Economics/Applets/Keynes/Keynes.html

Michael Taft

Tipster - that is so cool! I've put it up on a new post. Thanks for that.

Pavement Trauma

The problem with looking at quarter on quarter changes is that seasonality has to be taken into account. For example in the financial sector annual bonuses are typically paid in Q1. There seems to be a similar though less pronouced effect in the manufacturing sector.

If you compare year on year the average financial manager's hourly pay has gone from ~€48 in Q1 2008 to ~€40 Q1 2009, a 17% decrease.

Michael Taft

Pavement Trauma - I take your point re: bonus increases in the first quarter. However, there is something strange going on here. In the financial sector, management received bonus increases in the first quarter while clerical and production workers found theirs cut. This also occurred in the manufacturing sector. This compounds the increase in pay for the management while clerical and production workers had their pay cut. Now either we share the pain or we don't.

I also take your point re: the yearly decrease in management earnings, though I would point out this is entirely due to bonus payments. Base pay still rose. And management seems determined to reverse this downward trend - in the last six months management pay has increased by 11 percent. One of the ways this can be done, without increasing business costs, is to cut the pay (including bonuses) of those lower down the corporate chain.

Personally, I don't get too undone by these trends. We've been living with them for a long time. For instance, between 2006-1st quarter and 2009-1st quarter, management has gained €6.48 per hour in base pay(or 22%) while clerical workers gained 70 cents (or less than 4%).

The more things don't change, the more they don't.

Tipster

Three items in this morning's Guardian on excessive pay (a news item, an op-ed piece by Vince Cable and a letter signed by more than 90 people). What chance we might catch that particular virus.

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