(Note to Stan- aren't you PROUD of our free-market business plan?)
http://www.brownsvilleherald.com/news/wage-124497-workers-leads.htmlIf there’s anything faintly resembling good news in a just-released report from the U.S. Bureau of Labor Statistics, it’s that Texas’ share of hourly workers at or below minimum wage among U.S. states fell from 14.3 percent in 2009 to 9.5 percent in 2010.
This just barely qualifies as a positive, however, since the number of Texas hourly workers at or below the prevailing federal minimum wage still increased by 76,000 over 2009. At 9.5 percent, Texas ties with Mississippi in terms of U.S. states with the highest proportion of hourly-paid workers earning at or below federal minimum wage, which is $7.25 an hour.
Texas and Mississippi take top honors, therefore, in terms of having the lowest paid workers among all 50 states and the District of Columbia. To be fair, low wages are partly a function of lower cost of living. In Cameron County and the Rio Grande Valley, low wages and low cost of living — by some measures — go hand in hand, and are both a blessing and a curse in the view of economic development officials.
Except for 2003, the number of hourly paid workers at or below federal minimum wage declined steadily in Texas between 1998 and 2006. But Congress raised the minimum in 2007, 2008 and 2009, which had the effect of pushing more Texans over the line into minimum wage territory, says Cheryl Abbot, an economist with the BLS’s Southwest Information Office in Dallas.
“People who were making above minimum wage, when it bumped up they were suddenly in this category of minimum wage workers,” she says. “That accounts for the part of the increase.”
Among Texas’ 5.7 million hourly workers, 550,000 earned at or below federal minimum wage in 2010, according to the BLS report. Of those, 268,000 were right at the minimum mark wage and 282,000 fell below it. Median earnings among all hourly workers in Texas in 2010 was $11.40. Nationally, the median was $12.50.
While Texas — with Mississippi — has the most workers at minimum wage or less in the country, the state has plenty of company: Nationally, the proportion of hourly workers at or below minimum wage in 2010 was 6 percent — up substantially from 4.9 percent in 2009. The United States had 73 million hourly workers in 2010, according to the BLS.
“The fact that Texas’ percentage went up certainly isn’t any different from what we saw nationally,” Abbot says. “Wage increases for all workers were pretty low last year, if they happened at all. Again, that’s a reflection of the continued effects of the recession.”
Texas and several other states have legal minimum wage standards that match the federal standard. Five states — Alabama, Louisiana, Mississippi, South Carolina and Tennessee — have no minimum wage standard. More than a dozen states, concentrated in the West, Upper Midwest and Northeast, have standards higher than the federal standard. In four of those states — Alaska, California, Oregon and Washington — the number of hourly workers at or below minimum wage is less than 2 percent. Six percent is the national average.
Also, 2010 continued the persistent trend of women earning at or below minimum wage in greater numbers than men — 11.9 percent to 7.4 percent.
“It’s certainly nothing different if you’re looking at the data historically, but if you’re a woman your odds are much greater than a man that you’re making minimum wage,” Abbot says.
Gilberto Salinas, of the Brownsville Economic Development Council, says Brownsville and McAllen traditionally have ranked at the bottom in terms of low wages in the state.
“That’s good and bad,” he says. “In that regard we get noticed by a lot of companies. The low cost of labor is very attractive. But on the flip side, if that’s the only thing really getting you on their radar it’s not such a great situation.”
Low wages tend to be a fact of life in cities where government — rather than the private sector — is the top “industry,” Salinas says.
“The wealth of a community can be easily determined by looking at the top 10 or top 20 (employers) doing business in your community. If government dominates that list, you’re not going to have a lot of wealth in that community. Every community has government, but the wealth is determined by private sector. They’re the ones who tend to pay higher wages.”