Middle Class Squeeze

Earnings Growth Weak as Household Incomes Fall1

- The median full-time worker saw their real earnings increase annually by only .1 percent from 2000-2007, compared with .7 percent during the 90s expansion

- The real income of a typical household fell nearly $982, or 1.9 percent, between 2000 and 2006 (the last year for which we have data)

Caring for the Family More Costly Than Ever

- Average annual cost of infant care can range from $3,800 to $13,500

- 79 percent of family caregivers are providing care to someone over the age of 50

- The total estimated cost to employers for full-time employees with caregiving responsibilities is $17.1 billion

Explosive Health Care Costs Squeezing Family Incomes

- The average monthly family health care premium paid by employees has risen 68 percent since 2000, after adjusting for inflation

- Annual rate increases in Health Insurance premiums have outpaced worker’s earnings growth for the past decade

College Tuition Growth Continues to Outpace Inflation

- Average tuition and fees at public 4 year institutions between 2000-2001 and 2007-2008 increased by more than 46 percent, after adjusting for inflation

- Tuition increases between 2007-2008 reflect the fastest growth rate over any five year period on record

- Nearly two-thirds of college students graduate with debt

- The typical debt load of a college graduate is almost $20,000


[1] JEC Democratic staff calculations based on data from the Bureau of Labor Statistics, U.S. Department of Labor; JEC Democratic staff calculations based on data from the Census Bureau, U.S. Department of Commerce; JEC Democratic staff calculations based on data from the Bureau of Labor Statistics, U.S. Department of Labor.