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Middle incomejan2016slidedeck

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January Snapshot

Published in: Economy & Finance
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Middle incomejan2016slidedeck

  1. 1. Stuck in the Middle: What Happened to the Middle Wage Jobs? Regional Snapshot, January 2016 For more information, contact: Audrey Spiegel aspiegel@atlantaregional.com
  2. 2. In Sum… • Nationally, metro Atlanta has fairly high wages, especially when considering its low cost-of- living. • But overall wage growth has stagnated since 2010… • … especially in middle-wage jobs. • In fact, when compared to a set of peer metro areas, growth in middle-wage occupations in metro Atlanta is lagging significantly.
  3. 3. Nationally, There Is Much Discussion About the Disappearing Middle Class…
  4. 4. Average Earning Per Job, 2014 In terms of earnings per job, metro Atlanta is in the top 40 when compared to the top 100 U.S. metros. It has average annual earnings of $57,168. How do metro Atlanta wages compare to other U.S. metros? Source: Bureau of Economic Analysis, via Neighborhood Nexus
  5. 5. Change in Average Earnings Per Job, 2010-2014 Despite having a higher average income than many of the other largest U.S. Metros, the change in earnings since 2010 has been flat. In fact, it has declined by $70 (in current dollars) between 2010 and 2014. How have metro Atlanta earnings changed since 2010 ? Source: Bureau of Economic Analysis, via Neighborhood Nexus
  6. 6. Cost of Living Index 91.9 92.2 93.2 95.6 99.4 100.7 106 111 112.5 116.9 121.4 126.5 132.5 136.4 140.7 164 216.7 0 50 100 150 200 250 Dallas Houston Charlotte Atlanta Detroit Phoenix Miami Minneapolis Riverside Chicago Seattle Philadephia Boston Los Angeles Washington D.C San Francisco New York http://www.infoplease.com/business/economy/cost-living-index-us-cities.html Data are from 2010, from C2ER We can’t discuss wages in each metro area with also discussing cost of living. This chart ranks the cost of living index in large U.S. cities. Cities with the largest index are the most expensive, while cities with the lowest are the least expensive. So, as mentioned before, Atlanta ranks relatively well in terms of median wages, and it also has a fairly low cost of living. Conversely while New York and San Francisco have the highest wages, they also have the highest cost of living.
  7. 7. 391,540 265,740 214,020 204,650 157,610 149,020 139,720 131,230 118,260 97,810 97,070 75,320 63,280 54,440 53,330 49,440 34,900 32,790 23,390 21,670 11,500 1,250 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 High-Wage Mid-Wage This chart looks at total employment among the major occupational groupings in metro Atlanta for 2014. The bars are color-coded based on whether they are low-, middle- or high-wage occupations. Total Employment by Major Occupation Groupings, 2014 Low-Wage Source: Bureau of Labor Statistics
  8. 8. Low, Middle, and High Income EMPLOYMENT CHANGE, 2010-2014 While wages are mostly down across all categories and across similar metro areas, middle-wage occupations have experienced almost no growth in metro Atlanta since 2010, which is not the case in most other peer metros. … But Job Growth in Middle-Wage Occupations Lagging in ATL Source: Bureau of Labor Statistics 14.9% 14.3% 9.3% 14.1% 16.7% 9.7% 8.3% 0.2% 6.0% -0.6% 7.9% 9.4% 5.5% 2.0% 11.2% 19.5% 9.6% 14.5% 16.7% 11.6% 10.3% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Atlanta Charlotte Chicago Dallas Houston Minneapolis U.S. Employment Change by Wage Levels, 2010-2014 Low Middle High
  9. 9. $- $50,000 $100,000 $150,000 Food Preparation and Serving Personal Care and Service Building/Grounds Cleaning,… Healthcare Support Sales and Related Transportation and Material… Production Protective Service Office and Admin Support Construction and Extraction Installation, Maintenance,… Education, Training, and… Arts/Entertainment, Sports,… Life, Physical, and Social… Healthcare Practitioners… Business and Financial… Architecture and Engineering Legal Computer and Mathematical Management High-Wage Occupations Mid-Wage Occupations Low-Wage Occupations -20,000 -10,000 0 10,000 20,000 30,000 40,000 Median Annual Wage, 2014 Job Change, 2010-2014 This chart once again splits out all occupations into either high-wage, middle-wage or low-wage. While the groupings are somewhat arbitrary, this shows that those seven occupations in the middle have seen very little growth since 2010, especially when compared to growth in the lower-wage occupations. Job Change by Occupation Grouping, 2010-2014 Source: Bureau of Labor Statistics
  10. 10. $- $40,000 $80,000 $120,000 Food Preparation and Serving Personal Care and Service Building/Grounds Cleaning,… Healthcare Support Sales and Related Transportation and Material… Production Protective Service Office and Admin Support Construction and Extraction Installation, Maintenance,… Education, Training, and Library Arts/Entertainment, Sports,… Life, Physical, and Social… Healthcare Practitioners and… Business and Financial… Architecture and Engineering Legal Computer and Mathematical Management Median Annual Wage, 2014 Wage Change, 2010-2014 ($2014) $(6,000) $(4,000) $(2,000) $- $2,000 High- Wage Occupations Mid-Wage Occupations Low-Wage Occupations Shifting from change in the number of jobs to change in real wages, this graph shows that the only occupations to see any significant increase in wages since 2010 are those in the high-wage category. During that same time, wages in the middle- and low-wage occupations experienced dramatic declines. Wage Change by Major Occupations, 2010-2014 Source: Bureau of Labor Statistics
  11. 11. Labor Demand: Top Job Postings in metro Atlanta Last 12 months 6,197 6,467 7,130 7,213 7,580 7,581 8,575 8,905 8,946 13,300 14,283 20,891 23,159 28,134 0 5,000 10,000 15,000 20,000 25,000 30,000 Computer Systems Engineers/Architects Accountants Business Intelligence Analysts Sales Managers Human Resources Specialists Managers, All Other Customer Service Representatives Computer Systems Analysts First-Line Supervisors of Retail Sales Workers Sales Representatives, Wholesale and Manufacturing, Except… Retail Salespersons Registered Nurses Heavy and Tractor-Trailer Truck Drivers Software Developers, Applications Through Burning Glass Technologies, we are able to see the supply of these occupations in real-time. This chart shows the top occupations that employers are searching for in metro Atlanta. This shows a mix of “new economy” and “old economy” jobs Source: Burning Glass
  12. 12. Software Developers Retail Sales Persons Laborers and Freight Secretaries/Admin Maintenance/Repair 1st Line Supervisors, Retail Customer Service Rep Computer Systems Analyst Accountants Sales Rep/ Wholesale Trade Network & Computer System Admin Database Administrators Management Analysts Medical and Health Managers General/Occupation Managers Managers, All Other Sales Managers Marketing Managers Heavy and Tractor Trailer Truck Drivers Sales Reps 1st Line Supervisors of Office/Admin Human Resources Specialists Registered Nurses Burning Glass- Labor Insight: Top Job Postings & Mean Salary This scatterplot shows the top job postings in metro Atlanta and the mean salary of the jobs. The highlighted area is the middle income distribution band (this spans between 80 to 120 percent of the mean salary in metro Atlanta). After collapsing some of the most in-demand occupations into “computer occupations”, only 5 of the most in-demand occupations falls within the middle-income band. As you can see, a majority of the remaining top postings are high or low-wage occupations-only four are within the middle-wage distribution band. Source: Burning Glass & BLS Web Developers Computer Support Specialist
  13. 13. So where do middle income residents live in metro Atlanta? Now that we know what middle class wage jobs are looking like in Atlanta, let’s take a look where high concentrations of middle wage workers live in metro Atlanta. The largest concentrations are located on the exurban fringe and in the suburbs of Atlanta. Given the high levels of income inequality in the City of Atlanta very few middle-income households are located in City of Atlanta. Source: American Community Survey, via Neighborhood Nexus

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