The effects of the Great Recession may not be over for the middle class in Minnesota and around the United States. As the country continues its financial recovery the middle class must adapt.
Household incomes have been falling for about a decade. From 2007 to 2010 the annual median household income in the state of Minnesota fell a significant 14% from $61,051 in 2007 to $52,554 in 2010. That is greater than the national fall in annual median household income, which dropped from $52,823 in 2007 to $49,445 in 2010.
According to the National Law Project, about 60% of the incomes that have fallen nationwide have affected middle-income earners. Additionally, wages have increased very slowly even as the economy continues to grow. Many do not expect a swift recovery in wages even if the U.S. and Minnesota economies continue to strengthen. The highest-growing segment of the job market is in the lower-paying jobs. That means that some people who were comfortably earning middle class wages just a few years ago must take lower-paying jobs to pay their bills.
Some experts believe that the tide will turn for younger middle class workers who are appropriately trained for the current job market when baby boomers begin retiring in greater numbers. Until then, many middle-class Minnesotans will need to adapt and try to catch up financially.
Our Minnesota bankruptcy attorneys understand the problems facing the middle class in this state and encourage anyone struggling to learn more about their legal options.