Quote:work force participation ( the amount of the population employed or seeking employment)  source http://data.bls.gov/pdq/SurveyOutputServlet

 



Median Income adjusted for inflation

 



 

From 1999-2009 you had a decline of median income by 5% in direct correlation with a dropping workforce population. Simply put there was MORE jobs than people qualified to WORK so it becomes an employers market.

 

You seem to have your economic theories backward. Demand is what drives price increases. When there is demand for labor the price of labor increases if economic theory is to be believed. Your words: "There were MORE jobs than people qualified to work, so it becomes an employer's market" is nonsensical. When there are jobs that employers NEED to fill and not enough workers to fill them the price of labor increases.

 

Here's a thought exercise, let's say you want to sell your old truck, and you put a sign in your yard that says truck for sale. Doesn't even mention a price, just says truck for sale.

 

The next morning you open your door to leave for work and 100 people are outside saying they want to buy your truck. Do you tell them you're selling it for $2000, or do you tell them you're selling it for $10,000?

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