The drop in earnings is just one more sign that the country’s stalling economy is straining families — and it’s consistent with a generally bleak picture for American workers whose wages have remained stagnant since 2001.
Personal income fell 0.1 percent in August compared with the month before, the first decline since October 2009, the government said. As a result, Americans tapped their reserves, dropping the personal savings rate to its lowest point since December 2009, or 4.5 percent. Meanwhile, spending remained flat, when adjusting for inflation.
The trend is rooted in the country’s nagging unemployment problem, analysts said. No new jobs were created in August, keeping the unemployment rate stuck at 9.1 percent.
Declining incomes for Americans >