Human Services News

From Economic Policy Institute:

The Bureau of Labor Statistics release of its jobs report on Friday, April 4, provides an important set of labor market vital signs, which are key indicators of our overall economic health and the living standards of the vast majority of working families who rely primarily on wage income.

According to our analysis of Census Bureau data, the income of the typical (median) working family was lower in real terms in 2007 than at the end of the last business cycle, in 2000. Given that family incomes will almost certainly decline in 2008, the typical family's income---which failed to recover over this 2000 cycle---will now begin a new descent, as unemployment rises throughout 2008 and into 2009 (as is predicted by virtually every forecast).

Weakening labor market causes broad-based income declines Based on past experiences with how weakening job markets effect income growth, the rise in unemployment in 2008 will cause middle-class family incomes to fall by about $750, on average.

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