America’s employment rate increases but at lower salaries - WMC Action News 5 - Memphis, Tennessee

America’s employment rate increases but at lower salaries

NEW YORK (CNN) - A growing number of unemployed Americans are finding jobs, but many of them are accepting salary cuts to do so.

With so many Americans out of work for an extended period of time, some are getting desperate for a way to pay the bills.

To many of them, that means taking jobs that pay less than the jobs they had before. According to the Labor Department, average hourly earnings are down and more than a third of newly hired workers are making at least 20 percent less than they were before.

Lower wages allow employers to hire more workers, especially for companies in the service sector, which was the lending industry in new hires in 2010. Restaurants and bars were top job producers and hiring by retailers increased sharply during the holidays.

Going out to eat and drink more is considered a sign that Americans are ready to spend again, showing an improvement in the economy.

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