May 18th, 2009
The economy has affected the lives of millions of Americans in many different ways, including the more drastic cut-backs to the decrease in career salaries. Either way, this still indicates a drastic difference in the way of life for most people around the country. Career salaries are simply the latest casualty of the economy, as most companies are not instating bonuses, raises, and many are even decreasing current employee’s salaries in an effort to resist the recession on their industry.
Career salaries have defined the American working industry for centuries, as employers typically persuade workers to stay with their company by an increase in salary or by matching a competitive company’s salaries. However, the past year has indicated that most employees are now dispensable to their employers as very few raises have been offered in companies, and those employees that are unhappy are easily replaced by job seekers who have been unemployed for months. Therefore, companies have been able to refuse salary increases because they are aware that they will not be forced to lose their workers in the long run.
As more companies have refused salary increases, many others have lowered the average worker’s salary in an effort to cut down on “extraneous” costs. This is not a very optimistic viewpoint for employees who have been working for the same company for years; instead of receiving a raise, they are essentially receiving a demotion. This is an unavoidable result of the recession as companies have begun scrambling to both secure positions and make their companies cost-efficient at the same time. This is a difficult balancing act for many companies, and most employees have been forced to put up with it through the last year over a fear of losing their job.
While the economy is slowly recovering, unemployment remains at a high rate as companies are no longer hiring for fear of falling into a hole of debt. The only way to improve the economy in the long run is to again pay attention to employee’s career salaries and offer increases and future jobs to individuals across the country, rather than simply boarding up your doors to new career opportunities. Career salaries may take a while longer to bounce back, but finding one that suits your needs as a new graduate will not be as difficult in only a few months.