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U.S. Wages climbing

Posted by on Oct. 12, 2012 at 4:23 PM
  • 14 Replies


Got this off yahoo and thought I would share.  Here is the link.


Oil workers lead the way as U.S. wages climb

Big pay hikes in the energy industry have helped fuel the biggest jump in U.S. wages in more than five years, according to an industry report released Wednesday.

PayScale, which analyzes data from more than 10 million U.S. workers, reported that workers in the mining, oil and gas exploration industry have seen their pay increase by an average of 4.9% over the past 12 months and that has helped to push the average U.S. worker's paycheck 3% higher over the same period.

That's the biggest increase since PayScale began monitoring compensation in early 2007. After languishing at or below 1% for 12 straight quarters beginning in the spring of 2009, wages have recorded strong gains the past six months.

"The pay picture is brighter than it has been for a while," said Katie Bardaro, lead economist for PayScale. "The increases seem to be accelerating."

After a brief slowdown in oil and gas exploration early in the recession, there has been a boom in the field. Drilling companies are flocking to places like North Dakota and the Northeast and prices at the pump have skyrocketed, nearly tripling since 2008.

Oil and gas workers aren't the only ones coming home with fatter paychecks. In fact, all of the job categories that PayScale tracks saw pay increases during the past 12 months.

Information technology workers averaged a 4.5% increase in pay over the past 12 months. In places like Seattle, "there has been an almost crazy demand for IT workers," said Bardaro.

Pay raises in the utilities industry have also been strong, up 4.4% since September 2011.

Social services workers saw the smallest increase over the past 12 months, with their earnings up a paltry 0.4%. According to Bardaro, social workers suffered a drop in demand for their services when the economy began to brighten and there were fewer out-of-work Americans. In the early years of the recession, demand for counseling for substance abuse, health problems and troubled marriages was much stronger.

Pay raises varied a lot with location. Of the 20 largest U.S. metro areas, Houston recorded the biggest annual salary increase, 3.9%, followed by Dallas, San Francisco and Boston. All of these cities have heavy concentrations of either oil industry employers or high tech companies.

Phoenix, St. Louis and Baltimore workers fared the worst, with gains of 1.6%.

The pay hikes contrast sharply with pay trends at the depth of the recession. In 2009, the average U.S. worker's paycheck declined by 1.3% for the year.

A major contributor to the improvement is an increase in corporate profits. However, many companies -- still gun shy about weaknesses in the economy -- are reluctant to hire workers.

"Not everyone is hiring but they want to continue to increase productivity," said Bardaro. "It's cheaper to give someone a raise than to hire a new person."

by on Oct. 12, 2012 at 4:23 PM
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Replies (1-10):
Virgo.Mama
by Brittney on Oct. 12, 2012 at 6:17 PM
Good news!
Posted on CafeMom Mobile
Mom2Just1
by on Oct. 12, 2012 at 8:34 PM

THis awesome news!  My husband and I's income has increased every year.  (:

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Babybear89
by Gracey on Oct. 13, 2012 at 12:21 PM
Nice
Posted on CafeMom Mobile
countrygirlkat
by Kathleen on Oct. 13, 2012 at 12:23 PM

That should be good news for Colorado since we have so many energy related jobs here. 

heydooney
by Danielle on Oct. 13, 2012 at 5:53 PM

My husband works in the oil field. He gets paid 1 cent more per hour than current new hires do. He's been there two years. It kind of blows.

countrygirlkat
by Kathleen on Oct. 13, 2012 at 6:25 PM


Quoting heydooney:

My husband works in the oil field. He gets paid 1 cent more per hour than current new hires do. He's been there two years. It kind of blows.

That is really screwed up.  DH has been in the oil field for 4.5 years and he has gone up $7.00 an hour in that time.  Granted he has gotten a lot of certifications and moved up a lot in that time but still, your DH should have gotten so much more!

heydooney
by Danielle on Oct. 13, 2012 at 7:05 PM


Quoting countrygirlkat:


Quoting heydooney:

My husband works in the oil field. He gets paid 1 cent more per hour than current new hires do. He's been there two years. It kind of blows.

That is really screwed up.  DH has been in the oil field for 4.5 years and he has gone up $7.00 an hour in that time.  Granted he has gotten a lot of certifications and moved up a lot in that time but still, your DH should have gotten so much more!

Like any job, it's politics. He is well-liked by the crews, does what he needs to do, takes responsibility, works hard all the time, is not lazy. But he's not a favorite.

countrygirlkat
by Kathleen on Oct. 13, 2012 at 10:40 PM


Quoting heydooney:


Quoting countrygirlkat:


Quoting heydooney:

My husband works in the oil field. He gets paid 1 cent more per hour than current new hires do. He's been there two years. It kind of blows.

That is really screwed up.  DH has been in the oil field for 4.5 years and he has gone up $7.00 an hour in that time.  Granted he has gotten a lot of certifications and moved up a lot in that time but still, your DH should have gotten so much more!

Like any job, it's politics. He is well-liked by the crews, does what he needs to do, takes responsibility, works hard all the time, is not lazy. But he's not a favorite.

I hear you there!  DH has run into that for sure in jobs over the years so I know how frustrating it can be!  I told him tonight what you said about your DH and he says he has heard a lot of that in the oil field.  He also said that different companies try to save money different ways.  He has a lot of family in the oil field down south and they all have different stories.  One, like the article talked about gives a lot of raises still but they don't do all the bonuses and moving and housing like they used to do before the recession.  There are many that when looking for new hires now won't pay more for experience with other companies, they start you out at the lowest pay with possible moving up in a year or so.  Others still start people out at a higher rate but it will be forever before there is a raise.  So crazy!

sarahjz
by Sarah on Oct. 15, 2012 at 1:55 PM

So glad to read this!

mom2jessnky
by on Oct. 15, 2012 at 4:07 PM

Good news!

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