In Stubborn Recession, Those with Jobs Benefit from Greater Purchasing Power

It’s the “little-commented-on” silver lining of the Great Recession — employees who held onto their jobs are doing pretty well.  While the ranks of unemployed workers who have been out of work for 27 weeks or more is a staggering 45% — since World War II, it has never before been above 26% — real average hourly pay has risen nearly 5 percent since the start of the recession in December 2007.  Nominal wages (the numbers people see in their paychecks} have risen throughout the slump, as companies have passed along some of their productivity gains to their remaining workers.  And inflation, of course, has been almost non-existent.  Now, if only the still-employed would stop looking over their shoulders at their less-fortunate neighbors and go on a spending spree, maybe we could kick things into gear…  The New York Times Aug. 11, 2010