The article originally appeared at TomDispatch.com.
Think of it as a parable for these grim economic times. On April 19, McDonald’s launched its first-ever national hiring day, signing up 62,000 new workers at stores throughout the country. For some context, that’s more jobs created by one company in a single day than the net job creation of the entire US economy in 2009. And if that boggles the mind, consider how many workers applied to local McDonald’s franchises that day and left empty-handed: 938,000 of them. With a 6.2 percent acceptance rate in its spring hiring blitz, McDonald’s was more selective than the Princeton, Stanford or Yale University admission offices.
It shouldn’t be surprising that a million souls flocked to McDonald’s hoping for a steady paycheck, when nearly 14 million Americans are out of work and nearly a million more are too discouraged even to look for a job. At this point, it apparently made no difference to them that the fast-food industry pays some of the lowest wages around: on average, $8.89 an hour, or barely half the $15.95 hourly average across all American industries.
On an annual basis, the average fast-food worker takes home $20,800, less than half the national average of $43,400. McDonald’s appears to pay even worse, at least with its newest hires. In the press release for its national hiring day, the multi-billion-dollar company said it would spend $518 million on the newest round of hires, or $8,354 a head. Hence the Oxford English Dictionary’s definition of "McJob" as "a low-paying job that requires little skill and provides little opportunity for advancement."
Of course, if you read only the headlines, you might think that the jobs picture was improving. The economy added 1.3 million private-sector jobs between February 2010 and January 2011, and the headline unemployment rate edged downward, from 9.8 percent to 8.8 percent, between November of last year and March. It inched upward in April, to 9 percent, but tempering that increase was the news that the economy added 244,000 jobs last month (not including those 62,000 McJobs), beating economists’ expectations.
Under this somewhat sunnier news, however, runs a far darker undercurrent. Yes, jobs are being created, but what kinds of jobs, paying what kinds of wages? Can those jobs sustain a modest lifestyle and pay the bills? Or are we living through a McJobs recovery?
The Rise of the McWorker
The evidence points to the latter. According to a recent analysis by the National Employment Law Project (NELP), the biggest growth in private-sector job creation in the past year occurred in positions in the low-wage retail, administrative and food service sectors of the economy. While 23 percent of the jobs lost in the Great Recession that followed the economic meltdown of 2008 were “low-wage” (those paying $9–$13 an hour), 49 percent of new jobs added in the sluggish “recovery” are in those same low-wage industries. On the other end of the spectrum, 40 percent of the jobs lost paid high wages ($19–$31 an hour), while a mere 14 percent of new jobs pay similarly high wages.