Wage Cut....The New Unemployment!!!!!! Alstrynomics warned you this was coming....
June 08, 2009
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If you havn't received a paycut....expect one SOON!!!!
IF YOU CAN'T PAY YOUR RENT....YOU MIGHT AS WELL GET FIRED!!!!!!
(WSJ)
Pay cuts, rather than layoffs, have emerged as an alternative way for many companies to reduce labor costs as demand slumps during the recession.
If enough companies use pay cuts to avoid layoffs in the future, then the unemployment rate may no longer give a true reading on how workers are faring.
Employees, who have relied on pay raises to increase spending and boost their 401(k) contributions, would no longer be able to count on more cash in their paychecks over time. Even Social Security benefits down the road could be less than anticipated if annual salaries zig and zag every year.
Cuts in compensation are "more widespread now than in past recessions," said John Challenger, chief executive of outplacement firm Challenger, Gray & Christmas Inc., which tracks employment trends. Last week, Challenger reported that more than half of human-resource executives surveyed in May said their companies had instituted salary cuts or freezes in an effort to cut costs. That was up from 27% in the same survey in January.
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