Philadelphia-Camden-Wilmington MSA vs. New Jersey Comparative Trends Analysis: Average Earnings Per Job Growth and Change, 1969-2022 Introduction Philadelphia-Camden-Wilmington MSA: 2022 Avg. Earnings = $77,902 2022 Percent of State = 105.47% New Jersey: 2022 Avg. Earnings = $78,024 The United States economy has generated an impressive number of jobs since the 1970s. The contrast between the nation's vigorous employment growth and the modest performance of other major industrial countries is striking. Despite this rosy track record, the real (inflation adjusted) wages and salaries of many workers have stagnated or slipped in recent years. This development has provoked concerns about the quality of new jobs. Structural shifts in the composition of employment--from high-wage goods-producing to low-wage services-related sectors--is the culprit most often cited for the deteriorating quality of jobs. Regions vary greatly in the make-up of their labor force, in their industry composition of employment, and their economic experience. Reviewing and examining recent developments in average earnings per job in the Philadelphia-Camden-Wilmington MSA with comparisons to New Jersey and the nation is an important first step in understanding the economic forces at play in the Philadelphia-Camden-Wilmington MSA. Discussion: Average Annual Earnings Per Job are computed by dividing BEA total industry earnings estimates by the BEA total full- and part-time jobs estimates. No convenient or adequate means exist at the county or regional level for converting the job estimates to a full-time equivalent measure. So, interpret the average earnings per job estimates with caution in consideration of the following issues: Average earnings per job within industries involving more part-time work is lower than industries involving more full-time work, although there could be little difference in the underlying wage of full-time workers. Such differences could also prevail between counties and regions. An increase in the proportion of part-time jobs over time may erode average earnings per job estimates, although full-time earnings per worker may have remained unchanged. As with per capita income, average earnings per job may be subject to extreme short-run variation, especially in smaller counties. Major construction projects relating to building dams, nuclear power plants, and private plant construction projects have caused extreme fluctuations in many smaller counties. Such changes typify both small and large agriculture-dependent counties owing to the extreme annual variations in farm incomes. Also, Since average earnings per job are just a simple average, it does not account for variations in the distribution of earnings among high- vs. low-wage jobs. Philadelphia-Camden-Wilmington MSA Average Earnings Per Job, 1970-2022 Current vs. Constant Dollars Figure 1. Figure 1 depicts the Philadelphia-Camden-Wilmington MSA's annual average earnings per job over 1970-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of the Philadelphia-Camden-Wilmington MSA over time. When measured in current dollars, the Philadelphia-Camden-Wilmington MSA's average earnings per job increased 838.01%, from $8,305 in 1970 to $77,902 in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 59.77%, from $42,017 in 1970 to $67,132 in 2022. Real Average Earnings Per Job, 1969-2022 Figure 2. Figure 2 tracks the Philadelphia-Camden-Wilmington MSA's and New Jersey's annual real average earnings per job for the period 1969-2022 to illustrate real average earnings per job patterns over time. During this 54-year period, the Philadelphia-Camden-Wilmington MSA's real average earnings per job rose from $41,377 in 1969 to $67,132 in 2022, for a net gain of $25,755, or 62.24%. In comparison, New Jersey's real average earnings per job increased from $41,817 in 1969 to $67,237 in 2022, for a net gain of $25,420, or 60.79%. Real Average Earnings Per Job Indices (1969=100): 1969-2022 Figure 3. Figure 3 shows the Philadelphia-Camden-Wilmington MSA's real average earnings per job growth in a broader context by offering direct comparisons across time with New Jersey, the United States. The growth indices shown here express each region's real average earnings per job in 1969 as a base figure of 100, and the real average earnings per jobs in later years as a percentage of the 1969 base figure. This method allows for more direct comparison of differences in real average earnings per job growth between regions that may differ vastly in size. The Philadelphia-Camden-Wilmington MSA's overall real average earnings per job growth was 62.24% over 1969-2022 outpaced New Jersey's increase of 60.79%, and fell below the United States' increase of 62.26%. Average Earnings Per Job as a Percent of the U.S. Average: 1969-2022 Figure 4. Figure 4 portrays the trends for average earnings per job relative to the national average by tracing the Philadelphia-Camden-Wilmington MSA and New Jersey average earnings per job as a percent of the national average over 1969-2022. In 1969, the Philadelphia-Camden-Wilmington MSA's average earnings per job amounted to 108.84% of the national average; in 2022, it approximated 108.82%. Similarly, in 1969, New Jersey's average earnings per job totaled 109.99% of the national average; in 2022, it consisted of 108.99%. Philadelphia-Camden-Wilmington MSA Real Average Earnings Per Job: Annual Percent Change, 1970-2022 Figure 5. Figure 5 displays the short-run pattern of the Philadelphia-Camden-Wilmington MSA's real average earnings per job growth by tracking the year-to-year percent change over 1970-2022. The average annual percent change for the entire 53-year period is also traced on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, the Philadelphia-Camden-Wilmington MSA's real average earnings per job grew at an annual rate of 0.93% over 1970-2022. The Philadelphia-Camden-Wilmington MSA recorded its highest growth in 1998 (4.83%) and recorded its lowest growth in 2022 (-4.98%). In 2022, the Philadelphia-Camden-Wilmington MSA's real average earnings per job declined by -4.98% Philadelphia-Camden-Wilmington MSA Real Average Earnings Per Job: Annual Percent Change and Decade Averages Over 1970-2022 Figure 6. Over the past five decades some msas have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again shows the annual percent change in the Philadelphia-Camden-Wilmington MSA's real average earnings per job since 1970, but this time they are overlayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2022. During the 1970s, the Philadelphia-Camden-Wilmington MSA's annual real average earnings per job growth rate averaged 0.94%. It averaged 1.05% in the 1980s, 1.89% in the 1990s, 0.89% during the 2000s, 0.59% during the 2010s, -1.37% thus far this decade (2020-2022). Real Average Earnings Per Job Growth: Average Annual Percent Change by Decade Figure 7. Figure 7 compares the decade average growth rates for the Philadelphia-Camden-Wilmington MSA noted in the previous graph with the corresponding decade averages for New Jersey and the nation. As the chart reveals, the Philadelphia-Camden-Wilmington MSA's average annual real average earnings per job growth led New Jersey's average throughout the 1970s (0.94% vs. 0.82%), posted below New Jersey's average in the 1980s (1.05% vs. 1.61%), amounted to less than New Jersey's average throughout the 1990s (1.89% vs. 2.02%), outperformed New Jersey's average in the 2000s (0.89% vs. 0.45%), registered above New Jersey's average during the 2010s (0.59% vs. 0.46%), and recorded above New Jersey's average over the 3 year period of the current decade, 2020-2022 (-1.37% vs. -1.65%). Finally, relative to nationwide real average earnings per job growth trends, the Philadelphia-Camden-Wilmington MSA surpassed the nation during the 1970s (0.94% vs. 0.89%), topped the nation in the 1980s (1.05% vs. 0.71%), registered above the nation throughout the 1990s (1.89% vs. 1.68%), surpassed the nation during the 2000s (0.89% vs. 0.72%), posted below the nation during the 2010s (0.59% vs. 1.01%), and fell under the nation over 2020-2022 (-1.37% vs. -0.24%).
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