The new year means a new year of growth, but some employees are already struggling to get ahead.
In a new report by the accounting firm PricewaterhouseCoopers, it found that the average hourly wage of hourly employees in the United States declined by $1,400 over the past year.
The decline was most pronounced among executives, and in fact, hourly wage increases have decreased even more since 2011.
The firm estimates that the annual wage of an executive at a Fortune 500 company is now $45,000, down from $53,000 in 2011.
“We found that average hourly hourly wages have fallen by $400 since 2011,” Pricewaterhead reports.
“In fact, this has occurred despite a decline in the number of people employed as hourly employees.
So we’ve seen a decline, in fact a decline of the wages of hourly workers.
That’s not a good sign for employees.”
In its report, Pricewaterworth notes that while some companies are hiring new people at a rapid pace, other companies are simply shifting the bulk of their employees to other positions, including IT and sales.
And the firm cautions that even if a firm is able to increase its hourly pay to $60,000 or more, that will only happen if it is able keep the workforce strong.
“Some companies are moving workers to other jobs, like IT or sales, and then they’re moving people back into the workforce,” said Pricewater, referring to the shift from traditional to digital and new digital work.
“And the rest of the time they’re just moving people in and out of different roles.
So there are a lot of reasons why the average wage for hourly workers has declined.”
To be sure, many companies are still hiring and the workforce is growing.
And while the median hourly wage has fallen over the last year, the firm found that employees are still making more than $60K.
But Pricewater’s report notes that the rise in hourly wages is largely driven by the fact that the percentage of workers making $100K or more has grown over the same time period.