That’s the bad news from two recent studies:
1. A Northeastern University study found that corporate profits accounted for nearly 41 percent of the change in national income between the first quarter of 2002 and the fourth quarter of 2003. That exceeded the share employees saw in their paychecks.
“In no other recovery from a post-World War II recession did corporate profits ever account for as much as 20 percent of the growth in national income, and at no time did corporate profits ever increase by a greater amount than labor compensation,” the researchers say.
2. The damage has spread to managers and executives. In a study of 300 managerial and executive employees and 450 human resource professionals by Career-Journal.com and the Society for Human Resource , 83 percent said it’s extremely likely or somewhat likely that they will actively look for new jobs if the economy improves.
“We’ve reached a breaking point,” says CareerJournal.com editor Tony Lee. “Once the economy turns around a bit more and you start to see the hiring demand that’s inevitable, you are going to see high turnover rates.”
— Adapted from “Close to the Breaking Point,” Eve Tahmincioglu, Workforce Management.