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Middle class is forced to adjust expectations

Published: Sun, March 18, 2012 @ 12:00 a.m.

Star Tribune (Minneapolis)


A business degree and a decade of negotiating information technology contracts didn’t prepare Denise Sjoberg for workdays changing diapers, comforting crying toddlers and negotiating nap times.

But then, she’s not the only middle-class American adapting in tough times.

Sjoberg, who has an MBA, was laid off in 2009. When the 49-year-old mother of three teenagers couldn’t find a job in her profession, she opened a licensed day-care center out of her home in Eagan, Minn.

Today, she makes $13,000 less per year, thinks twice before going out to eat and won’t take a big vacation any time soon. “You don’t compare what you had with what you’re going to have next,” Sjoberg said.

Across the country, household incomes have been falling for a decade, a dip accelerated by the Great Recession and profoundly felt by the middle class. From 2007 to 2010, the median household yearly income nationwide fell from $52,823 to $49,445.

The recession upended a fundamental assumption of middle-class life — the belief that most working families can count on earning a little more than the year before.

“All of those rules you had about how the world operates, they’re all gone,” said Tom Gillaspy, Minnesota’s demographer.

The 8 million jobs lost to the recession cemented a decade of declining income. Roughly 60 percent of job losses fell disproportionately on midwage hourly positions, according to the National Employment Law Project.

As a result, wage growth has been slower the past two years than at any time over the past 30 years, the Economic Policy Institute says.

Most economists do not expect a swift reversal, even as the economy shows signs of strengthening.

That leaves many middle-class Americans in the midst of a vast recalculation — about careers, lifestyles, homes and retirement. They must reassess what they value and how they define success.

It means frugal living, postponing retirement and retraining if they want to restart their careers.

“They have to recalibrate what they can expect,” said Russell Price, an Ameriprise Financial economist.

Many in the middle class who never lost their jobs are still struggling with declining incomes.

Wendy and George Vyskocil of Otsego, Minn., managed to hold onto their jobs during the recession — she as a medical transcriptionist, he as a union heavy-equipment operator. But they now make about $60,000 a year, a little more than half of what they once earned.

“My husband has only worked four months in each of the last two years,” said Wendy Vyskocil, who once made $45,000 a year but now makes $28,000 after pay cuts.

The couple are “mad, sad and frustrated,” as they have retooled their lifestyles to get by. They shop at bargain stores and do much of their own auto and home repairs. They trade do-it-yourself skills in a sort of barter system with family and friends.

Hard lessons are playing out across the country, as a broad range of middle-wage jobs disappeared during the recession, and the sluggish recovery hasn’t brought enough of them back.

In fact, the highest rate of job growth has been among lower-income positions.

“People who lost their jobs during the downturn have gotten hit really hard,” said Heidi Shierholz, an economist with the Economic Policy Institute.

Many workers who were laid off haven’t fully recovered, even after being rehired, Shierholz said. When they got a new full-time job, the wage was 10.5 percent lower than their previous salary in 2010.

People in the middle class with college degrees are doing better than those with high school diplomas. But neither education nor previous career experience guarantees success in the today’s jobs market.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


1redeye1(5612 comments)posted 4 years, 3 months ago

Well I know the local liberals won't like this. But look who's been in office the last two years .OBAMA!! But we can't blame the king because he 's untouchable. This guy is leading this country down the wrong path. I can only hope that enough people wake -up and vote him out in Nov.

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2nanana(15 comments)posted 4 years, 3 months ago

You can't always get what you want but with Obama the possibilities are endless.

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3thinkthentalk(310 comments)posted 4 years, 3 months ago

Thanks for the big whole your people dug us into redeye

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4jojuggie(1701 comments)posted 4 years, 3 months ago

Hey stop, so the guy who founds a business in his basement,or garage, works 18 hours a day to perfect his invention - then expands to a large building, and eventually employs 500 people, becomes a millionaire, should share his hard earned money with someone on food stamps - is that what you mean?
That's a brilliant idea. I never thought of that.

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5redeye1(5612 comments)posted 4 years, 3 months ago

Origin of Left & Right

I have often wondered why it is that Conservatives are called the "right" and Liberals are called the "left."

By chance I stumbled upon this verse in the Bible:
TNT Like I said we can't blame the King because as far he's concerned its everyone's fault just like you. Ths guy keeps spending money that we don't have but that's alright

"The heart of the wise inclines to the right,
but the heart of the fool to the left."
Ecclesiastes 10:2 (NIV)

"A wise man's heart is at his right hand;
but a fool's heart at his left".

Ecclesiastes 10:2 (KJV)

Thus sayeth the Lord. Amen.

Can't get any simpler than that.

Subject: Spelling Lesson

The last four letters in American..........I Can
The last four letters in Republican.......I Can
The last four letters in Democrats.........Rats

End of lesson... Test will follow in November, 2012.

Remember, November is to be set aside as rodent extermination month

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6300(573 comments)posted 4 years, 3 months ago

They're referred to as "left" and "right" based on where the two sides sat in the National Assembly after the French Revolution.

I should bill you for this teaching moment, but I'll just write it off as charity.

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7Jerry(845 comments)posted 4 years, 3 months ago


But why did the French sit the conservatives on the right and the liberals on the left?? Maybe it is like redeye suggests.

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8300(573 comments)posted 4 years, 3 months ago

It wasn't where the French state sat them, it was where they naturally congregated in the hall.

Redeye, is trying to interject religion as possible proof that liberals are foolish and that conservatives are wise. "Right" in English was translated from the French "Droit", which is not a homonym, as it is English, for being correct.

Also, even if they had been directed where to sit, nothing from the bible would've been used as justification. Certainly, not after the revolution when the Church was stripped of pretty much all of its powers and lands. Much like most of our revolutionary leaders, their French counterparts weren't religious people by and large.

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9VINDYAK(1824 comments)posted 4 years, 3 months ago

Food for thought...

Of the 4 households in my family, each and every one earns less income today than in 2009. And yet, expenses have risen, despite these reduced incomes. House payments, car payments, utility bills, taxes and food. Not much left for anything else. Gas tanks don't get filled up much anymore.

So, where do we go from here? Can we continue on the same path, which is spiraling down faster than we can find a second job, or even, God forbid, finding a better paying job with full benefits?!

Change...we sure got it and it hurts to see my family suffer.

I sure hope someone out there is happy, but I can't seem to find them.

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