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Wage Deflation

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I think that's more to do with somebody not understanding what level she works at rather than her salary really dropping that much.

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I think that's more to do with somebody not understanding what level she works at rather than her salary really dropping that much.

If she takes the work at that rate, her salary has dropped that much. If she doesn't, and keeps getting the work at the higher rate, then it hasn't.

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If she takes the work at that rate, her salary has dropped that much. If she doesn't, and keeps getting the work at the higher rate, then it hasn't.

+1

This is the reality of wage deflation

Most people - little/no effect

A few people = huge drops in income

Examples: middle management at Woolies, bank workers, car showroom salesmen, estate agents, etc.

Lets hope they didn't take out stupid mortgages or bought payment insurance

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No. The reality of wage deflation is the average.

Even in the biggest boom time some people are made redundant/go under/off sick so cannot work/never manage to find work again etc. etc.

Isolated examples are tragic for the individual, but do not represent anything of any meaning for the rest of us.

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No. The reality of wage deflation is the average.

Even in the biggest boom time some people are made redundant/go under/off sick so cannot work/never manage to find work again etc. etc.

Isolated examples are tragic for the individual, but do not represent anything of any meaning for the rest of us.

I agree with your second comment

I am afraid I disagree with your first and third though

The average is made up of lots of little data points (in this case people's personal experiences)

in a recession more people lose their jobs and because less new jobs are being created, they find it takes longer to find work or have to take less well paid work just to pay the bills

Also many people in work have their overtime, bonuses hours or even wages cut because demand is less

Thats still wage deflation, or rather take home pay deflation

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This is an isolated example of wage deflation for an individual - probably a result of a misunderstanding. Even in a boom time you could come up with similar examples - as you agree. Ergo, it is utterly meaningless.

in a recession more people lose their jobs and because less new jobs are being created, they find it takes longer to find work or have to take less well paid work just to pay the bills

Indeed, but there is nothing in this thread to suggest whether or not we are in a recession.

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yeah the world is full of arty types who are jsut misunderstood and underpaid by commercial organisations.

+1

Your work is only worth what someone will pay for it...

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