In at least 22 U.S. cities, average wages still have some catching up to do with sustained job growth in the post-recession economy.
The Wall Street Journal analyzed almost 400 metropolitan areas’ Labor Department data to find that only 33 cities were back to pre-recession employment levels. And only one-third of those had wages to match.
Cities such as Columbus, Houston, Minneapolis, Oklahoma City and Topeka have unemployment rates comparable or even below their pre-recession rates, but wages still resemble 2005-2007 paychecks — and haven’t caught up to today’s cost of living.
Other cities, such as Austin saw only a slight wage growth decline when compared to pre-recession rates. Bismarck, North Dakota, and Midland, Texas, are among the metro areas that have both job growth and wage growth to match.
The Journal also found some cities with especially stagnant rates in wage growth. In Houston, the 6.2 percent wage growth in 2005-2007 trumps 2014’s 3.9 percent wage growth. Topeka’s 2014 wage growth was just 0.9 percent compared to 2005-2007’s 4.1 percent.
Persisting low wages are a familiar problem by now. Economist Robert Gordon told the Journal this inertia, even with low unemployment, is a result of “psychological scars” of the recession, so unemployment could continue to decline for many years before wages catch up.
Marielle Mondon is an editor and freelance journalist in Philadelphia. Her work has appeared in Philadelphia City Paper, Wild Magazine, and PolicyMic. She previously reported on communities in Northern Manhattan while earning an M.S. in journalism from Columbia University.
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