Greenhouse – Coursework Example
Teacher Greenhouse The shift towards the increased number low income job after the recession is very significant. Imagine 73% of those new jobs created were in the $13.52 per hour salary range. This trend now seems to continue and the new reality in the labor force as reflected in the management practices at Jamba Juice as described in the New York Times article. In a report given by David Autor, an economics professor at M.I.T., it was found that “the number of jobs in midwage occupations remained 8.4 percent below the prerecession peak, while jobs in higher-wage occupations remained 4.1 percent below and lower-wage jobs were just 0.3 percent below their former peak”. What does this mean? It meant that high paying jobs are diminishing and low wage jobs are on the rise.
This new phenomena in the labor market is a new addition to the reality of disposable workforce which has been in vogue since globalization is introduced. Coupled together, this means that people now have low-paying insecure jobs that would likely increase the number of those who are poor and widening the social inequality between the haves and have nots. These new phenomena in the labor market is brought by globalization as competition forced business organizations to skimp on costs including labor costs to remain competitive.
Ideally, this should be reversed. Realistically however, this trend is likely to continue because the market is exerting its pressure on business organizations to cut down on cost which put a downward pressure on wages.