Wage Change Insights (17)
The wages in Wyoming grew in the 2000-2006 period as a result of a boom in the mining and drilling sector. The wage growth rate in Wisconsin over the last decade peaked at 2.9% in 2017-2018 as a result of continued growth post the 2008 recession.
- Wisconsin's unemployment rate has been below the US average since 2008. However, its wage growth in the period 2007-2018 was 23.7%, lower than the US average of 24.5%.
- One factor driving wage growth in Wisconsin (like in the US) is a tightening labor market. Higher wages are required to attract people in a tight labor market.
- The rate of wage growth changed from 2.2% in the period 2007-11 to 2.2% in 2012-2016 and 2.9% in 2017-18. The increase in wage growth in the period 2017-18 can be attributed to a tighter labor market resulting from 10 years of growth.
- The Manufacturing and Agricultural Credit (MAC), "which took effect in 2013", created a total of 42,000 jobs in Wisconsin in 2013-2016, of which 20,000 were manufacturing jobs. Manufacturing accounted for an 18.6% share of Wisconsin's real GDP in 2016.
- Information, and finance and insurance sectors in Wisconsin grew faster than the national average in the period 2011-16. The average pay in both sectors is substantially higher than the average across all industries. However, they account for a relatively small share of the real GDP: information (3.8%), and finance and insurance (7%).
- In terms of employment, "Trade, Transportation and Utilities" is the largest in the United States. However, as of 2019, Wisconsin had not "reached its prerecession employment level".
- The minimum wage rate in Wisconsin was progressively increased from $5.15 in 2000 to $5.7 in 2006 to $6.5 in 2008 and $7.25 in 2010. The increase in the minimum wage rate in the period 2006-2010 also resulted in the average wages moving higher.
- In the 2005-2009 period, Wisconsin's average wages dropped 4% to 85.6% of the national average (same as Alabama), indicating relatively poor wage growth. In the same period, the out-migration flow also increased to roughly 7,000 individuals leaving the state every year. The individuals leaving the state are usually high-wage earners.
- A 2007 study concluded that "Wisconsin is more attractive to low-income individuals than to high-wage earners." Wisconsin had a negative net migration every year in the period 2010-2017, with a maximum differential in migration of -15,130 in 2015.
- Wage increases in Wyoming in the period 1996-2008 can be largely attributed to the "boom in mining and drilling". Mining also resulted in an increase in wages across all other sectors as it competed with others for more manpower.
- Wages in Wyoming increased across all industries in the period 2006-2017, with "manufacturing, information and financial activities" seeing dramatic increases. "Mining, transportation and education" witnessed lackluster growth and hospitality was the only industry to see a decline in average wages, albeit by 1%.
- However, these numbers alone do not tell the entire story -- the decrease in wages in the hospitality sector was a result of an increase in hiring part-time workers and the 26.5% wage growth in manufacturing was in part a result of lower-paid workers being laid off.
- There was a 7.3% real growth in the professional services industry in the 2008-2017 period.
- Mining accounts for a larger share of Wyoming's economy than any other state in the US, and therefore, average wages in the mining sector significantly impact average annual wages. A major factor impacting wages in Wyoming are energy prices and the demand for coal.
- The minimum wage rate in the state was increased from $1.6 in 2000 to $5.15 in 2002 and $7.25 in 2019.