PAUPERIZATION OF WORK IN THE UNITED STATES In September, 1986, some 24 million persons,' over 20% of the civilian workforce, worked less · than 35 hours a week. Joblessness in the United States affects far more than the 8.4 million persons reflected in the official unemployment rate. As of September, 1986, 15.6 million persons were without full-time work, resulting in a jobless rate of 13.4%. The difference between the unemployment rate (around 7%) and the jobless rate are discussed in the sixth in a series of papers on joblessness and pauperization in America, published by the Council on International and Public Affairs. Changes in definitions of employment and unemployment made over time have resulted in this unemployment understatement. One major factor is that the Bureau of Census considers as fully employed anyone who has worked an hour or more in a week. In September, 1986, some 24 million persons (over 20% of the civilian workforce) worked less than 35 hours a week. The Unemployment Rate also does not include anyone who has not actively sought work in the preceding four weeks. But joblessness is only part of the picture. Also important is pauperization of work-replacement of higher paid jobs by those at or close to the minimum wage, often part time, and below the poverty line. By far the greatest loss of jobs, 2.0 million, has occured in manufactu:ring, and within manufacturing, in the durable goods sector, where the highest-paying manufacturing jobs are located: 1.5 million jobs lost in 6.75 years. By contrast, the service-producing sector of the economy continued to rise, generating 12.2 million jobs during the same period. However, 76.2% of these jobs were in the two lowest-paying categories of the service sector-namely, retail trade and health and business services. For More Information: The Underbelly of the U.S. Economy, Council on International and Public Affairs, 777 United Plaza, New York, NY 10017, 1986. Page 26 RAIN Fall/Winter 1986 DISCRETIONARY INCOME ON RISE It is estimated that about 26.5 million, or slightly less than 32% of all U.S. households haa at least some discretionary income at their disposal. · The Conference Board in conjunction with the U.S. Bureau of Census has published an update to Marketers Guide to Discretionary Income guide published in 1983, a useful insight to consumer habits of Americans. Discretionary income is generally used to define the money available to households after all basic, everyday expenditures have been made. Of the 32% of households with discretionary income three fifths of them have two or more persons working. Two-thirds of the total taxes were collected from those having discretionary resources. The age class 40-65 has a substantially higherthan-average incidence of households in the affluent earnings brackets. Discretionary income is largely in that age group-representing 40% of all households, but accounts for well over half of all discretionary resources. Households headed by persons 65 or older also represent an important segment of the luxury market, because they are fairly numerous: 21% of the population, and 18% of all discretionary spending. For More Information: A Marketer's Guide to Discretionary Income, Consumer Research Center, The Conference Board, Inc., 845 Third Ave., New York, NY 10022, 1985, 51pp.
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