How Our Salaries Are Changing
The current economic slump isn’t just squeezing people’s incomes. It’s also jolting the ways we think about money. Household budgets are tightening up everywhere as people scramble to save cash and guard against hard times. The frantic race to keep up with the Joneses has been put on hold. And as layoff notices and foreclosures sweep the country, being able to count on a dependable paycheck suddenly has become goal No. 1.
Since December 2007, when the U.S. economy slipped into recession, at least 4.4 million jobs have been lost. In February, the national unemployment rate reached 8.1%—its highest level in 26 years. Even with President Obama’s $787 billion stimulus package, some economists think the jobless rate could top 10% before the slump is over. Hard-hit states such as Michigan, South Carolina, and Rhode Island already are seeing double-digit unemployment.
“In these times, people are willing to trade away some excitement on the job if they can just have more security,” says Max Caldwell, an employment expert at Towers Perrin, a consulting firm based in Stamford, Conn., that regularly surveys workers’ attitudes nationwide. In its most recent survey, conducted in December, workers ranked job security and adequate health and retirement benefits as their top priorities. “Maximizing earnings” didn’t even make the top five.
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