Wage Change Insights (B)

Part
01
of four
Part
01

Wage Change Insights (5)

Although wages have increased in all three states between 2000 and 2019, the rates of wage growth in Illinois and Indiana have been lower than the national average while Iowa has seen fairly high wage growth. Illinois has had among the worst wage growth in the U.S. due to a declining population and income tax increases, and Indiana has had similarly slow wage growth due to relatively low levels of education among its workers and recently lost many high-paying jobs in manufacturing. However, Iowa has had relatively high wage growth because of low unemployment and increased skill levels of its workforce.

Factors Affecting Wage Growth in Illinois, Indiana, and Iowa

ILLINOIS
  • Although the state's average wages increased overall between 2000 and 2019, Illinois' wages have increased at slower rates compared to the national average following the Great Recession. When adjusted for inflation, Illinois has had the second-lowest income growth among U.S. states. From 2007 to 2019, the U.S. overall average 2.1% inflation-adjusted income growth compared to Illinois's 1.1% inflation-adjusted income growth.
  • According to the Illinois Policy Institute, Illinois's population has been consistently decreasing since 2014, which has slowed economic development and caused the state's relatively low rate of wage growth. Illinois residents are moving to other states at high rates looking for lower housing costs, more competitive pay, and more job opportunities, especially for manufacturing jobs, which have declined in Illinois in the last decade.
  • Additionally, since 2000, the state's pension debt has grown rapidly, with an increase of over 500%. To allow the state to cover the cost of paying off this debt, Illinois lawmakers have increased the state's income taxes twice, in 2011 and 2017. These tax hikes have had lasting negative impacts on the rate of job creation, thereby limiting wage growth as well.
INDIANA
  • Average wages have grown in Indiana between 2000 and 2019, but that growth has been well below the national average since 2004 because Indiana's workforce has relatively poor educational attainment levels. A poorly educated workforce means that a relatively high proportion of Indiana's job market is composed of low-wage jobs, which are more likely to be lost during short-term economic downturns and slow the state's long-term wage growth.
  • Additionally, between 2015 and 2019, Indiana's northwest region lost in 1,614 lucrative manufacturing jobs, with an average annual income of $100,268, as well as hundreds of jobs in merchant wholesale and publishing. In place of these above-average paying jobs, the region had increases in low-wage service jobs.
IOWA
  • Compared to the rest of the U.S., Iowa has seen relatively high wage growth between 2000 and 2019, with the 7th highest rate of weekly wage increases from 2007 to 2017.
  • Iowa's unemployment rate has been steadily dropping and, as of 2019, was the fourth-lowest in the country, at 2.6%. Recent employers in Iowa are having to compete for workers, which has increased wages in the state. This increasing hiring competition has also resulted in employers having to seek out and train unskilled workers, which has resulted in wage increases across multiple industries.
  • As a result of the increasing demand for workers in Iowa's job market, wage growth between 2007 and 2017 was particularly high in the following job sectors: 40% wage growth in natural resources and mining jobs and 30% wage growth in professional/financial services, leisure, hospitality, IT, and construction jobs.
Part
02
of four
Part
02

Wage Change Insights (6)

The average growth in wages remained stagnant in Kentucky between 2000 and 2019. After 2015, the state noticed poor wage growth. Kansas noticed low wage growth between 2000 and 2019. The period from 2001 to 2010 was marked as a "lost decade" due to the recession and saw the loss of private-sector jobs mainly in the airline industry as a result of the terrorist attack of September 11, 2001. In Louisiana, average wages between 2000 and 2019 grew due to the boom in the energy sector and the state noticed "most of the biggest inflation-adjusted gains in average weekly wages."

Changes in Average Wages Between 2000 and 2019

Kansas

  • Between 2000 and 2019, average wages in Kansas increased slightly in comparison to the national average. This is mainly because the period from 2000 to 2010 has been marked by the recession and was considered the “lost decade”. Also, there was an uneven job growth throughout Kansas in the decade after the year 2000.
  • However, "wage and salary growth showed resilience" in Kansas state between 2000 and 2010. Moreover, during this decade, the growth in the "average non-farm wage" in Kansas was "higher than the national average, though it still lagged the region."
  • A similar trend was noticed in private-sector wage and salary growth. Kansas experienced an average growth of 3%, which was higher than the national average of 2.8% over the period but still lagged behind the growth in the six-state region (3.3%).
  • Between 2013 and 2014, following the "tax cuts", Kansas' wage and salary growth reached 4.7% which was behind the national average of 5.2%.
  • The main reason behind the "low wage growth" between 2000 and 2019 was associated with "low productivity growth."
  • Also, between 2000 and 2010, Kansas experienced a loss of 25,000 private-sector jobs. About 50% of the job loss was related to "trauma in the airline industry" as a result of the terrorist attacks of September 11, 2001. Following the terrorist attacks, there was a decade of recession which mainly affected the airline industry.

Kentucky

  • The average growth in wages between 2000 and 2019 in Kentucky remained largely stagnant. Although the economic recovery started in 2010, workers in Kentucky did not notice an increase in their average annual real wages. Even in 2017, the real wage growth remained "non-existent" for most of the workers.
  • However, in 2015, unemployment in the "Commonwealth finally returned to its pre-recession rate of 5.4 percent" and that was the year when workers in Kentucky also noticed growth in real wages for the "first time since 2001."
  • As per an analysis from the Economic Policy Institute, even after the productivity of workers in Kentucky increased, "poor wage growth" was still perceptible. One of the reasons behind the stagnant or poor growth in wages for workers was that a "disproportionate share of the gains from economic growth is going to owners in the form of capital income and to managers’ salaries as opposed to workers in the form of wages."
  • As of December 2017, Kentucky "supported 1.9 million wage and salary jobs" indicating an increase of approximately 180,000 jobs statewide after the recession. In comparison to the nation's 12.6%, the state added jobs more slowly (10.4%), yet still "at a higher rate" than all but two bordering states (Tennessee and Indiana).
  • Governor Matt Bevin in Kentucky has been aggressively looking for economic development efforts, keeping the state open for business. About 45,791 new jobs have been announced with approximately $16.5 billion in investment in Kentucky since December 2015, indicating that companies are interested in investing in the state.
  • Despite the governor's efforts in most of Eastern Kentucky, wages and salaries decreased for non-agriculture jobs by 14.1%. However, in 2016, the "losses started leveling off."

Louisiana

  • The average wage in Louisiana has grown modestly between 2000 and 2019 due to the boom in the energy sector.
  • Since 2000, Louisiana has been among the states which noticed "most of the biggest inflation-adjusted gains in average weekly wages" due to direct benefits from the boom in energy production in the US.
  • In the second quarter of 2017, the average weekly wage in the manufacturing sector was about $1,332 in Louisiana. In comparison, the weekly wages in the oil and gas extraction sector were 76% higher at $2,343 and 70% higher at $2,259 in the refining sector.
  • Additionally, weekly wages in the pipeline industry were 26% higher at $1,673 than the average wage in the manufacturing sector.
  • Louisiana and Arizona were the only two states that have experienced an increase in "inflation-adjusted wage growth" during the first two years of the Trump government.
Part
03
of four
Part
03

Wage Change Insights (7)

Between 2000 and 2019 the average wage increased in Maine, Maryland and Massachusetts. Maine's tight labor market condition has driven the average wages in the state.

Maine

  • The tightening labor market has driven inflation-adjusted average wages up in Maine between 2010 and 2019.
  • In Maine, the number of people earning less than $10 per hour has declined from 2010 to 2018 mainly because of highly competitive labor market conditions.
  • The state of Maine has seen an increase in job growth in healthcare, professional services, and the hospitality sector which has driven the average wage between 2010 to 2019.

Maryland

  • The average wage in Maryland has risen between 2000 and 2019 as information technology, telecommunications, and aerospace and defense have contributed to Maryland's economic growth.
  • The technology industry in Maryland contributes a major workforce with 184,076 workers in 2017 and was ranked fifth for the concentration of tech industry employment in the total workforce.
  • The average wage has risen as more businesses have been opened in Maryland and the state has seen an increase of 120,000 jobs from losing 100,000 jobs from 2010 to 2019.

Massachusetts

  • The average wage has increased between 2000 and 2019 in Massachusetts, as wage growth has been particularly strong in innovation economy sectors since 2012 as scientific, technical and management Services (16.9%), biopharmaceuticals & medical devices (16.0%), and financial services (12.4%) sectors had double-digit wage growth.
  • In Massachusetts, technology and knowledge-intensive industry sectors along with increased employment concentration provide some of the highest paying jobs which have led to an increase in average wages between 2010 to 2019.
  • Industry output of the state of Massachusetts which is used as a tool for GDP and economic performance forecasts has also been a key driver of wage growth in the state.
  • The state of Massachusetts supports nearly 111,000 jobs by manufacturing exports, compared to 6.2 million nationwide which has been another reason for an increase in average wages in the state.
Part
04
of four
Part
04

Wage Change Insights (8)

Statistics supplied to us indicated that over the past 19 years, Minnesota and Mississippi have experienced average annual wage increases, while Michigan has experienced an average annual wage decrease. Insights into the states' economies and other conditions were sought to provide reasons for the increases and decrease.

After Inflation Wage Growth Difference
Michigan 55163.96393 54635.05 -528.9139307
Minnesota 52783.67563 61073 8289.324373
Mississippi 37571.88951 44910.05 1 733.860487

Year MI MN MS
2000 40.00 2000.00 18.51 37011.00 17.71 35414.00 12.60 25208.00

2019 38.90 1945.00 28.09 54635.05 31.40 61073.00 23.09 44910.05

Michigan

  • Average annual wages have actually declined in Michigan by $528.91 over the period 2000 to 2019, adjusted for inflation, according to the figures supplied.
  • Reasons offered for Michigan's decline in wages include fewer manufacturing jobs and lower wages paid in those manufacturing jobs now than once were paid.
  • Another reason offered for Michigan's decline in wages may be that union membership is declining. "In 2016, 14.4% of Michigan workers were union members. That's above the national average of 10.7%, but still a substantial drop from 30 years ago when almost 30% of Michigan workers were in a union."
  • Michigan has now banned Living Wage Ordinances, which required that living wages be paid to workers. Under Living Wage Ordinances, "contractors and other businesses who receive economic assistance from these cities, townships, and counties must pay their employees .... a wage that would allow them to live above the federal poverty level."
  • Michigan is a "right to work" state, which means that neither employers nor unions can require employees to belong to a union. Studies show that right-to-work states have lower wages than do states without such laws.
  • Many of the "new" jobs in Michigan are low-paying jobs. "Food prep jobs, which pay less than $20,000, grew 20 percent to nearly 75,000. Factory production work with average pay of $33,500 jumped 11 percent to 38,000 jobs."

Minnesota

  • Over the period of 2000 to 2019, Minnesota's average annual wages increased by $8,289, adjusted for inflation, according to figures supplied.
  • Minnesota experienced wage declines during the Great Recession, but in recent years, wages have grown again.
  • Many Minnesotans are employed in education, health services, trade, transportation, and utilities, with almost 50% of the labor force in those professions in most counties. Rural counties have more people employed in agriculture, government jobs, or self-employment. The Twin Cities area, where 65% of the population lives, has a large number of people employed in professional and business services. None of these employment facts are new situations taking place between 2000 and 2019.
  • Minnesota is not a right-to-work state, and has strong unions that cover 380,000 workers, or 13.7 percent of the work force.
  • "Minnesota has the highest percentage of adults with a high school degree at 93%" in the US. With good schools, a healthy population, and plenty of recreation and leisure opportunities, "the state ranks third overall on Forbes' quality of life measurement".

Mississippi

  • Average annual wages in Mississippi increased by $1,733, adjusted for inflation, between 2000 and 2019, according to figures supplied.
  • The job of cashier is the largest type of job in Mississippi, with over 42,000 workers. According to the Bureau of Labor Statistics, cashiers earn an average $19,620 annual salary, less than half of Mississippi's median household income.
  • Mississippi does not have a state minimum wage. It uses the federal standard $7.25 an hour as its minimum wage. "According to the U.S. Bureau of Labor Statistics, Mississippi's workforce participation rate is about 55 percent — ahead of only West Virginia."
  • In Mississippi, the largest group of employees work for elementary and secondary schools (84,320 people). The next largest employers are restaurants and food services (74,989 people), and then hospitals (72,635 people).
  • 21.5 percent of Mississippi residents live below the poverty line (620,000 people of the 2.9 million population), higher than the national average of 13.1%. The largest demographic category of people in Mississippi living in poverty are females 25-34, followed by females 18-24, and females 35-44.
  • Mississippi's workforce is educated with 84 percent receiving a high school diploma. But during the past 50 years, "at the same time that Mississippi's workforce became more educated and more productive than ever, income inequality accelerated."

Research Strategy

Extensive research did not reveal any reasons why Mississippi's and Minnesota's average wages should have increased, adjusted for inflation, over the past 19 years. Government reports, reports produced by NPOs, newspaper and magazine editorials, news stories, economic articles, demographic comparisons over time, and speeches by officials were consulted, but none of this information provided any clear, cause-and-effect relationships between current conditions and wage increases, adjusted for inflation, in the two states.
Sources
Sources

From Part 04
Quotes
  • "Rising wage inequality and slow and uneven hourly wage growth for the vast majority of workers have been defining features of the U.S. labor market for the last four decades, despite steady (if too slow) productivity growth. In only 10 of the last 40 years did most workers see any consistent positive wage growth: in the tight labor market of the late 1990s and in the last five years (2014–2019), when the unemployment rate hit its lowest point in 50 years. "
  • "Despite these gains, wage inequality continues to climb and workers at the middle and bottom of the wage scale are just making up lost ground and continue to struggle to make ends meet rather than get ahead. The median hourly wage—the wage at which half the workforce is paid more and half the workforce is paid less—stands at $19.33 per hour. For a full-time, full-year worker, this would translate into about $40,000 per year."
  • "The data show not only rising inequality through the 2000s, but also the persistence—and in some cases worsening—of wage gaps by gender and race. What also stands out in this last year of data is that, while wages are growing for most workers, wage growth continues to be slower than would be expected in an economy with historically low unemployment."
  • "Slow wage growth cannot be explained away by positing education shortages, by including benefits and looking at total compensation, or by changing the price deflator (changing the way wages are adjusted for inflation). "
  • "Slow and unequal wage growth is the result of a series of policy decisions that have reduced the leverage of most workers to achieve faster wage growth."
  • "Except for the wage gains spurred by exceptionally low unemployment in the late 1990s and the last five years, wage growth would have been zero over the last four decades."
  • "2000–2019: Hourly wages have continued to grow slowly and unequally since 2000"
Quotes
  • "The bad news: Michigan lags the nation in both average wages and wage growth. The average full-time wage was $1,020 nationally in the second quarter of 2017, which was up 22 percent from 1990 after factoring inflation."
  • "1. Manufacturing employment is shrinking Manufacturing has been the backbone of Michigan's economy for generations, a sector that has historically employed large numbers at above-average wages. Michigan still ranks No. 1 nationally in auto-manufacturing jobs and No. 4 in overall manufacturing. But between automation and moving jobs to other states or countries, manufacturing employment has fallen dramatically in Michigan."
  • "2. Manufacturing wages have fallen below the national average Not only are there fewer manufacturing jobs in Michigan, but in relative terms, they pay less than they once did. In 1990, the average weekly wage for a full-time manufacturing worker in Michigan was 23% above the national wage -- $652 in Michigan compared to a national average of $531, according to the U.S. Bureau of Labor Statistics. In the second quarter of 2017, the most recent data available, the full-time weekly wage for a Michigan manufacturing job average $1,223, which was 1% below the national average of $1,239, the BLS data shows."
  • "3. Michigan lags in educational attainment Wages are increassingly tied to educational attainment, but Michigan lags the national average in percentage of the workforce with at least a bachelor's degree. In 2016, 31.3% of U.S. adults age 25 and older had at least a bachelor's degree compared to 28.3% in Michigan. More alarmingly, the same gap exists among ages 25 to 34: 34.9% of American young adults have at least a bachelor's degree, compared to 31.8% in Michigan."
  • "4. More households are headed by retirees Thanks to Baby Boomers, Michigan is a rapidly graying state, and retirees tend to have lower incomes than working-age Michiganders."
  • "8. Union membership is declining In 2016, 14.4% of Michigan workers were union members. That's above the national average of 10.7%, but still a substantial drop from 30 years ago when almost 30% of Michigan workers were in a union."
Quotes
  • "Living Wage OrdinancesTop Several Michigan cities, townships, and counties have adopted living wage ordinances and policies. Contractors and other businesses who receive economic assistance from these cities, townships, and counties must pay their employees a “living wage.” These ordinances vary, but they try to pay employees a wage that would allow them to live above the federal poverty level. Living wage rates are often adjusted annually. They are usually around $13 per hour for workers who receive employer health insurance and $15 per hour for those who do not."
  • "In 2015, the Michigan Legislature passed a law that bans any new living wage ordinances or policies. Ordinances adopted before January 1, 2015 remain in effect and can be enforced. Municipalities with existing living wage ordinances include: Ann Arbor Eastpointe Ferndale Lansing Monroe Pittsfield Township Southgate Superior Township Taylor Warren Ypsilanti Ypsilanti Township Ingham County Macomb County Washtenaw County "
Quotes
  • "1. RTW states include Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming."
  • "This paper updates and confirms the findings of Gould and Shierholz (2011). No matter how you slice the data, wages in RTW states are lower, on average, than wages in non-RTW states. As shown in great detail in Gould and Shierholz (2011), these results do not just apply to union members, but to all employees in a state. Where unions are strong, compensation increases even for workers not covered by any union contract, as nonunion employers face competitive pressure to match union standards. Likewise, when unions are weakened by RTW laws, all of a state’s workers feel the impact."
Quotes
  • "The economy of Michigan employs 4.51M people. The largest industries in Michigan are Motor vehicles & motor vehicle equipment manufacturing (367,022 people), Restaurants & Food Services (318,840 people), and General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals (269,478 people), and the highest paying industries are Agricultural chemical manufacturing ($163,446), Computer & peripheral equipment manufacturing ($127,550), and Communications, & audio & video equipment manufacturing ($123,974). Median household income in Michigan is $56,697. Males in Michigan have an average income that is 1.38 times higher than the average income of females, which is $48,599. The income inequality in Michigan (measured using the Gini index) is 0.472, which is lower than than the national average."
  • "Most Common The most common jobs held by residents of Michigan, by number of employees, are Other managers (112,316 people), Registered nurses (106,630 people), and Driver/sales workers & truck drivers (106,230 people)."
  • "Most Specialized Compared to other states, Michigan has an unusually high number of residents working as Mechanical engineers (7.11 times higher than expected), Tool & die makers (6.72 times), and Forming machine setters, operators, and tenders, metal and plastic (4.58 times)."
  • "The most common employment sectors for those who live in Michigan, are Motor vehicles & motor vehicle equipment manufacturing (367,022 people), Restaurants & Food Services (318,840 people), and General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals (269,478 people). This chart shows the share breakdown of the primary industries for residents of Michigan, though some of these residents may live in Michigan and work somewhere else. Census data is tagged to a residential address, not a work address."
  • "Global Diversity Most Common Origin Mexico 89,142 ± 7,297 people India 75,308 ± 6,712 people Iraq 66,449 ± 6,308 people In 2018, the most common birthplace for the foreign-born residents of Michigan was Mexico, the natal country of 89,142 Michigan residents, followed by India with 75,308 and Iraq with 66,449. "
  • "Most Common Ethnicity White Alone 7.48M ± 2.65k Black or African American Alone 1.36M ± 7.64k Hispanic or Latino 517k ± 13.9k In 2018, there were 5.48 times more White Alone residents (7.48M people) in Michigan than any other race or ethnicity. There were 1.36M Black or African American Alone and 517k Hispanic or Latino residents, the second and third most common racial or ethnic groups."
  • "Veterans Most Common Service Period Vietnam 197,668 ± 4,649 Gulf War (2001-) 74,655 ± 4,927 Gulf War (1990s) 65,387 ± 4,060 "
Quotes
  • "Lots of jobs … for low pay The troubling spot for the economy, though, is that the number of low-paying jobs is exploding. Food prep jobs, which pay less than $20,000, grew 20 percent to nearly 75,000. Factory production work with average pay of $33,500 jumped 11 percent to 38,000 jobs. And the really long view? There are 235,000 fewer jobs statewide than there were in 2001, even though the population is roughly the same at 9.9 million. And while weekly wages are up from 2009, they are almost identical to what they were 15 years ago ($973) when adjusted for inflation. Today, more than 40 percent of Michigan school students are eligible for subsidized lunch, and the ranks of the working poor has swelled. According to Nancy Lindman, director of public policy and partnerships for the Michigan Association of United Ways, 60 percent of jobs pay less than $20 an hour. “We are talking about people working who aren’t able to support their family,” Lindman said. "
  • "Where’s the job growth in Michigan? Below are the fastest growing occupations in the state since 2009, in terms of new jobs and fastest growth. Biggest increase in jobs Rank Job 2016 Increase from Percent Med. pay 2009 1 Team assemblers 105,140 61,400 140.4 $32,060 2 Food prep & serving wrkrs114,410 43,010 60.2 $19,130 3 Customer service reps 89,370 32,010 55.8 $31,870 4 Personal & home care aides37,870 24,500 183.2 $21,380 5 Gen and ops managers 58,040 23,600 68.5 $98,590 6 Mechanical engineers 42,080 12,750 43.5 $86,550 7 Medical secretaries 21,150 12,060 132.7 $32,740 8 Retail salespersons 147,440 11,980 8.8 $21,270 9 Employment, recruitment, and placement specialists 14,160 9,830 227 $56,740 10 Sales reps 54,300 9,180 20.3 $58,680 Biggest percentage increase in jobs*"
Quotes
  • "The 13.1 percent U.S. poverty rate is significantly higher than Minnesota’s, at 9.6 percent. But while Minnesota is tied for fourth among states for lowest poverty rates (only New Hampshire, Hawaii and Maryland are lower), poverty rates as low as 8 percent in the late-1990s show the state can do better, Liuzzi said. Greater Minnesota has seen stagnant poverty rates — about 2 percentage points higher than Minnesota’s — for longer than the state as a whole, Liuzzi said."
  • "ACS data continue to show Minnesota’s communities of color economically better-off than a few years ago, Brower said. That’s notable because Minnesota has some of the worst racial and ethnic disparities in the U.S.; black and Native American Minnesotans’ median household income is a little over half that of white Minnesotans. Though some of the estimates for communities of color aren’t statistically different from last year’s, Brower said the long-term trend shows progress: The number of Minnesotans of color working full time and at wages above $35,000 has increased. Poverty rates for Minnesota’s communities of color have also decreased over time, Brower said."
Quotes
  • "Minnesota’s job market is significantly tighter than the national job market, and the difference is showing up in faster real wage gains in Minnesota than nationally. Faster-growing paychecks in Minnesota may be a drag on employment growth, as Minnesota employers become less competitive in national and international markets due to higher payroll costs. But higher wages in the state could also work on the supply side by boosting immigration into Minnesota by workers seeking higher pay. A faster-growing labor force would be welcomed by Minnesota employers, even if the boost is fueled by higher wages."
Quotes
  • "Minneapolis is 1 of 15 metropolitan areas in the United States, and 1 of 3 areas in the Midwest region of the country, for which locality compensation cost data are now available"
  • "Minneapolis’ annual increase in total compensation costs in December 2019, at 2.5 percent, compared to gains of 2.4 and 2.9 percent, respectively, in Chicago-Naperville, IL-IN-WI, and Detroit-Warren-Ann Arbor, MI, the two other metropolitan areas in the Midwest. Minneapolis’ 2.2 percent increase in wages and salaries over this 12-month period compared to advances of 2.6 percent in Chicago and 3.7 percent in Detroit. (See table 2.)"
  • "The Employment Cost Index (ECI) measures the change in the cost of labor, free from the influence of employment shifts among occupations and industries. The compensation series includes changes in wages and salaries and employer costs for employee benefits."
Quotes
  • "Education and health services along with trade, transportation, and utilities employ nearly 50% of the labor force in most of our counties no matter how rural.Rural counties, however, have ahigher percentage of people employed in agricultureandgovernment jobs orare self-employed, while the Twin Cities area has a significant share of people employed in the professional and business services sector"
  • "Althoughagriculturalland values are beginning to decline since theirpeak in 2014, they continue to be historically high, with the largest increases in land value occurringalong the western side of the state.Meanwhile, low commodity prices and increases in the costs of production havecreated a situation where many farmers have a negative net income. Even when including government payments, which typically represent 2% to 3% of total farm income, most farmers are barely getting by."
  • "Top industries around the state in terms of employment include trade, transportationand utilities; leisure and hospitality; manufacturing; construction; farm employment; and professional and business services. The one significant difference between the regions is the high employment in the professional and business services in the entirely urban group of counties "
  • "Western counties have the highest percentage of employment in agriculture, with many over 20%. The largest share isin Marshall County, where 34% of employmentare in agriculture. However, in most southern Minnesota counties 10% or fewer of the jobs are in agriculture"
Quotes
  • "Minnesota, like much of the United States, has a relatively older population with a median age of 37.7. According to projections, Minnesota will see a rise in one-person households, while the number of married couple families will decline. While the state is growing steadily, it is not enjoying the rapid growth of many Southern and Western states with a younger population."
  • " Rural areas will continue to be older than the growing urban areas, and increased diversity is projected with the populations of color and Hispanic origin increasing faster than the white population. Very fast growth is expected for African Americans, Latinos and Asians in particular, stemming from foreign migration. "
Quotes
  • "Minnesota's rank is based on a strong labor supply and quality of life. The Minneapolis-St. Paul metro area is home to 65% of the state’s population. It is also serves as the state’s economic hub, with companies such as Target, U.S. Bancorp, General Mills, 3M and Medtronic headquartered there. Minnesota has the highest percentage of adults with a high school degree at 93% (it ranks ninth for college attainment). With its good schools, healthy populous and abundance of recreation and leisure options, the state ranks third overall on Forbes' quality of life measurement"
  • "Household Income Growth 3.1% Right to Work State no Union Workforce 15%"
  • "High School Attainment 93.1% College Attainment 36.1% Graduate Degrees 12.5%"
  • " Forbes Lists #15 Best States for Business #40 in Business Costs #7 in Labor Supply #16 in Regulatory Environment #16 in Economic Climate #27 in Growth Prospects #3 in Quality of Life "
Quotes
  • "In 2019, union members accounted for 13.7 percent of wage and salary workers in Minnesota, compared with 15.0 percent in 2018, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the union membership rate for the state was at its peak in 1992 when it averaged 22.0 percent, and at its low point in 2019. "
  • "Since 1989, when comparable state data became available, union membership rates in Minnesota have been above the U.S. average."
  • "Minnesota had 364,000 union members in 2019. In addition to these members, another 17,000 wage and salary workers in Minnesota were represented by a union on their main job or covered by an employee association or contract while not union members themselves. "
Quotes
  • "Ward and Drones earn $8 and $8.50-an-hour, respectively, greeting shoppers, stocking goods and working the cash register. They’re two of Mississippi’s roughly 42,000 cashiers, the single most common job in the state, outnumbering teachers, police officers, registered nurses and the population of Meridian, the state’s 6th largest city."
  • "The argument in favor of lifting the wage floor is that giving people fatter paychecks can help lift them out of poverty while detractors warn that forcing employers to pay workers more will lead to job losses, pushing families deeper into poverty. This debate is particularly consequential in Mississippi, where more families live in poverty than any other state and a significant portion of all jobs are low-wage."
  • "Minimum wage in Mississippi — which follows the federal minimum of $7.25 an hour — hasn’t budged in a decade. Meanwhile, 29 states have enacted higher minimums, ranging from $7.50 to $12."
  • "Today, cashiers make up a greater portion of Mississippi’s workforce — about 37 out of every 1,000 workers — than any state in the country, according to Bureau of Labor Statistics. They earn an average $19,620 annual salary, less than half the state’s median household income, which would put a single mom with two kids below the poverty line."
  • "Less than one-third of cashiers in Mississippi are teenagers, according to data from Current Population Survey, a joint survey by the U.S. Census Bureau and the U.S. Bureau of Labor Statistics.* They are also overwhelmingly women, 86 percent, and more than one-fourth are over 30 years old."
  • "Since the last federal wage hike in 2009, cost of living has increased, so while pay has remained relatively stagnant, the value of the worker’s dollar has also fallen by about 16 cents. The minimum wage of $7.25 today is worth $6.07 in 2009 dollars."
  • "From 1996 to 2001, the minimum wage of $4.75 to $5.15 had more buying power than today’s minimum wage. The highest value minimum wage in modern history was $1.60-an-hour in 1968, which translates today to $11.89, a little more than the living wage for a single person in Jackson, according to the MIT living wage calculator. The living wage for a single mom with one child is $21.80-an-hour — and that’s working full-time."
  • " Mississippi's most popular jobs and average pay (in thousands) At over 42,000 workers, cashiers are Mississippi's largest labor force. Of the 15 most popular jobs in the state, only three come with an average annual income of over $40,000. Ten have average incomes less than $30,000, which is about $15-an-hour full-time, and two were under $20,000. "
Quotes
  • "Goodwin said that many businesses understand they have to pay more to attract workers, but it’s still not easy with such a tight labor market. Compounding the problem is that the labor participation rate – the number of people available for work as a percentage of the total population – is at a meager 63 percent. It’s even lower in Mississippi, which also is hampered by a high number of people too sick or disabled to work. For example, 13.2% of those aged 56 to 60 cite those reasons for not being in the labor force. The level of sickness is highest in Mississippi, Alabama, Kentucky and West Virginia, with the two most common illnesses diabetes and high blood pressure."
Quotes
  • "A survey shows most Mississippi business owners say a minimum wage increase would not hurt their bottom line — and some think it could help. More than 6,700 businesses responded this month to an eight-question survey conducted by the Mississippi Secretary of State. One of the questions asked: "How would a minimum wage increase impact businesses in your community?" About a fifth of respondents said it would cause job loss or cause a hiring freeze. But a majority said a wage hike would have no impact or that most businesses already pay above minimum wage. Some — about 15 percent of LLCs and about 7 percent of corporations — said a minimum wage increase would create positive competition."
  • "Mississippi does not have a state minimum wage. Instead, like many states, the minimum wage is the federal standard $7.25 an hour."
  • "According to the U.S. Bureau of Labor Statistics, Mississippi's workforce participation rate is about 55 percent — ahead of only West Virginia."
Quotes
  • "Population 2.99M 0.0814% growth Median Age 37.7 Median Household Income $44,717 2.73% growth Poverty Rate 21.5%"
  • "The population of Mississippi is 56.4% White Alone, 37.8% Black or African American Alone, and 2.92% Hispanic or Latino. N/A% of the people in Mississippi speak a non-English language, and 98.5% are U.S. citizens."
  • "The economy of Mississippi employs 1.17M people. The largest industries in Mississippi are Elementary & secondary schools (84,320 people), Restaurants & Food Services (74,989 people), and General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals (72,635 people), and the highest paying industries are Glass & glass product manufacturing ($133,681), Pharmaceutical & medicine manufacturing ($119,200), and Drugs, sundries, & chemical & allied products merchant wholesalers ($105,123)."
  • "Households in Mississippi have a median annual income of $44,717, which is less than the median annual income of $61,937 across the entire United States. This is in comparison to a median income of $43,529 in 2017, which represents a 2.73% annual growth."
  • "In 2018 the highest paid race/ethnicity of Mississippi workers was Asian. These workers were paid 1.03 times more than White workers, who made the second highest salary of any race/ethnicity."
  • "21.5% of the population for whom poverty status is determined in Mississippi (620k out of 2.89M people) live below the poverty line, a number that is higher than the national average of 13.1%. The largest demographic living in poverty are Females 25 - 34, followed by Females 18 - 24 and then Females 35 - 44."
  • "The most common racial or ethnic group living below the poverty line in Mississippi is Black, followed by White and Hispanic."
  • "The most common job groups, by number of people living in Mississippi, are Driver/sales workers & truck drivers (41,722 people), Elementary & middle school teachers (35,525 people), and Cashiers (35,401 people)"
  • "The most common employment sectors for those who live in Mississippi, are Elementary & secondary schools (84,320 people), Restaurants & Food Services (74,989 people), and General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals (72,635 people)."
  • "In 2016, Mississippi had the highest prevalence of adults who haven't seen a doctor in the past 12 months due to cost, at 19.2%. It is followed by Texas (17.9%) and Louisiana (17.6%)."
Quotes
  • "Of the 11,000 jobs Mississippi added last year, about 1,400 were in government. Professional and business services had the strongest growth (5,300), followed by leisure and hospitality (3,600), and manufacturing (2,000)."
  • "Education and health services added a modest 300 jobs and construction did not any jobs. Financial activities had a loss of jobs (-100) as did trade, transportation, and utilities (-1,900). Mississippi’s unemployment rate, which is historically among the highest in the country, sits at 4.7 percent. It’s down slightly from 4.8 percent last December, but still higher than the national average of 3.9. What can Mississippi do better?"
Quotes
  • "Area 48,432 SQ. MI. GDP $109.375 Billion College Educated 32% Population 2,984,100 Capital Jackson Median Income $23,121"
  • "Racial discrimination and segregation prevailed in Mississippi through the 20th century. Between 1915 and 1960, about 5 million southern African-Americans left the South, including hundreds of thousands from Mississippi."
  • "Today, agriculture and forestry is Mississippi’s top industry. Mississippi produces more than half of the country’s farm-raised catfish, and it is also a top producer of sweet potatoes, cotton and pulpwood. Other main state industries include advanced manufacturing, trade, transportation and utilities, and education and health services."
  • "Rank #49 out of 50 in 2018 #48 Overall Rank RankingsHealth Care #50 Education #46 Economy #48 Infrastructure #45 Opportunity #44 Fiscal Stability #44 Crime & Corrections #26 Natural Environment #11 "
Quotes
  • "On their own, these two charts show that Mississippians are more educated than ever, and creating more value than ever. Yet their paychecks do not reflect this. If Mississippi's workers are producing more value than ever, yet receiving very little in return, where is all that value going? In the last chart, I draw from the World Inequality Database (find it at wid.world/world/) to help shed some light. The chart shows the distribution of income to the bottom 90 percent, the top 10 percent, and the top 1 percent of all earners. In 1917, the bottom 90 percent of earners in Mississippi received three-quarters of all income, compared to one-quarter for the top 10 percent. The top 1 percent received 12 percent of all income, or roughly twelve times the average wage. Yet by 2014, the top 10 percent's share increased from 25 to 45 percent, and the top 1 percent's share increased from 12 to 15 percent, or roughly 15 times the average wage. Meanwhile, the share going to the bottom 90 percent—the working class—fell to just 45 percent of total income. If we put these three charts in conversation with one another, an important conclusion emerges: At the same time that Mississippi's workforce became more educated and more productive than ever, income inequality accelerated."