Middle- and working-class families are enjoying the best standard of living in some of the most expensive U.S. cities, according to a new economic analysis.
That may seem far-fetched given that people earning less than $100,000 in San Francisco are considered low-income, but the new analysis from the Ludwig Institute for Shared Economic Prosperity (LISEP) found that the high cost of living in these regions is offset by higher-than-typical wages.
In fact, the best-performing region for middle- and working-class families is the Bay Area, despite the sky-high cost of living in San Jose and San Francisco, according to the analysis of 50 big U.S. cities.
Even so, about 6 in 10 Americans are failing to meet their basic needs, with their incomes falling short by almost $14,000 on average in 2022, LISEP noted. That underscores the struggles that many households are facing after two years of rising inflation, which has pushed up costs for everything from food to rent.
"For middle- and lower-income Americans, wherever it is in the United States, you aren't doing great," Gene Ludwig, the chairman of LISEP, told CBS MoneyWatch.
Middle- and working-class families are enjoying the best standard of living in some of the most expensive U.S. cities, according to a new economic analysis.
That may seem far-fetched given that people earning less than $100,000 in San Francisco are considered low-income, but the new analysis from the Ludwig Institute for Shared Economic Prosperity (LISEP) found that the high cost of living in these regions is offset by higher-than-typical wages.
In fact, the best-performing region for middle- and working-class families is the Bay Area, despite the sky-high cost of living in San Jose and San Francisco, according to the analysis of 50 big U.S. cities.
Even so, about 6 in 10 Americans are failing to meet their basic needs, with their incomes falling short by almost $14,000 on average in 2022, LISEP noted. That underscores the struggles that many households are facing after two years of rising inflation, which has pushed up costs for everything from food to rent.
"For middle- and lower-income Americans, wherever it is in the United States, you aren't doing great," Gene Ludwig, the chairman of LISEP, told CBS MoneyWatch.
Examining the intersection of wages and the cost of living at a regional level is important because "we all live locally," Ludwig noted.
Even though the cost of living in the Bay Area is among the highest in the U.S., the region offers a more diverse mix of jobs, including a bigger range of upper-middle-income jobs, than some other cities. But cities where median household incomes are failing to keep up have sparser opportunities, by comparison.
In cities such as Las Vegas and Fresno, "It means there are more low-wage and middle-income jobs than there are upper-paying middle-income jobs," Ludwig noted.
The analysis was based on city-specific data including the cost of living for households, examining essential items such as housing and food, as well as earnings for full- and part-time workers, as well as for jobless people who are seeking employment.
The unequal impact of inflation
Ludwig, the former comptroller of the currency and the founder of Promontory Financial Group created LISEP in 2019 to track economic measures of well-being for middle- and working-class Americans, such as wages and unemployment.
While the U.S. government tracks such data, Ludwig argues that the measures often don't accurately reflect the economic situation for millions of U.S. households — including the impact of inflation, which is a sore point for many Americans after two years of bruising price hikes.
Inflation has hit low- and middle-class Americans particularly hard, something the Consumer Price Index — the national measure of inflation — isn't capturing, Ludwig noted. That's because the CPI, a basket of goods and services, tracks some items that may not have much bearing on the lives of middle-class families, and thus doesn't accurately reflect their experiences, he added.
Housing as measured by the CPI has increased 54%, but Ludwig's group's analysis found that the typical rent for middle- and lower-income households has soared by almost three times that level, at 149%.
"In the last 20 years, inflation for middle- and lower-income Americans has been higher than it has been for upper-income Americans," Ludwig said. "Wage growth hasn't kept pace such that you are worse off than you were 20 years ago."
Sharing the wealth generated from a growing U.S. economy is essential to maintaining the middle class and creating a stable society, he added. That can help middle- and low-income Americans "share in the American dream," Ludwig said. "Unfortunately, it's going in the wrong direction."
Until this point, it has been said that interviewers want a job applicant who possesses all the requirements listed in the job description. While that’s technically correct, there are other things that can make a difference in the hiring process.
Hiring managers, in addition to having the right skills, educational background, talents, and credentials, want someone with certain innate attributes. These include communication skills, a growth mindset, and the ability to be a team player.
Experience Isn’t Everything
While it’s essential to have the right skills, prior experience, and requisite knowledge, there are often intangibles that managers seek. They may be willing to forgo a candidate who just looks good on paper for someone who could easily win friends, influence people, and collaborate well with co-workers, managers, clients, and others.
Hiring managers want to hire an upbeat, enthusiastic person with a positive attitude. They desire an applicant who is likable, charismatic, and charming. The candidate must come across as a person who is dependable and can get the job done.
There is little tolerance or interest in a person who is negative and complains. They’ll summarily end the interview if the manager feels the applicant will be a whiner and say things like, “This wasn’t in the job description,” and “Why do I have to do this?”
There’s an interest in a person who can easily make small talk, schmooze with people and possesses a sense of humor. A hiring supervisor won’t say this in an interview, but they’d prefer to hire someone they can have a beer or dinner with after work. They like people with wide-ranging interests because they are usually the most interesting. The caveat is that they can’t be a blowhard about it.
When times are tough, hiring managers need someone who can roll with the punches, doesn’t crack under pressure, is always willing to go the extra mile, and is a team player. These and similar traits will make you stand out in an interview and even beat out someone with more relevant experience but lack interpersonal skills.
Attributes That Make You More Employable
Professionalism And Communication Skills
Hiring managers value candidates who demonstrate professionalism, effective communication skills, and the ability to articulate their ideas clearly. Strong communication skills are essential for building rapport and conveying one's qualifications effectively during the hiring process.
Adaptability, Critical Thinking, And Problem-Solving Abilities
Hiring managers seek individuals who can navigate challenges, think creatively, and adapt to changing work environments.
Teamwork And Collaboration
In business, the whole is greater than the sum of its parts. The ability to work effectively in a team, collaborate with colleagues, and demonstrate strong interpersonal skills is a key attribute that hiring managers look for in candidates.
Enthusiasm And Motivation
Hiring managers appreciate candidates who show enthusiasm, motivation, and a genuine interest in the role and the organization. It demonstrates a passion for the work and the company’s mission, products, and services. The higher your engagement, the more productive you will be.
Cultural Fit And Alignment
Hiring managers consider a candidate's alignment with the company's values, culture and mission. Candidates who exemplify the company's culture and strongly align with its values are more likely to be viewed favorably.
Development And Growth Mindset
Candidates who are proactive and show intellectual curiosity, a commitment to professional development, a growth mindset and a willingness to learn and grow within the organization are highly valued.