This report explores the impact of wage increases on statewide economic activity through a study of the potential impacts of increasing wages for state-paid home care workers in Washington state to $15 per hour. The report also analyzes the potential local economic impact of this wage increase on five counties: Adams, Clark, Cowlitz, King, and Spokane. In Washington state, public home care workers are paid through the state Medicaid program to provide support for seniors and people with disabilities to remain in their homes. Home care is provided either by an individual worker who directly contracts with the state, known as an “individual provider,” or workers hired by private home care agencies. The analysis in this report focuses on the 34,686 state-paid individual provider home care workers for which detailed wage data is readily available from Service Employees International Union 775, the union that represents these workers. A $15 minimum wage for home care workers would impact 81 percent of the state’s individual provider workforce. The economic analysis in this report is focused on the impact and projected spending on workers – for wage increases up to $15 per hour.
Hard work is supposed to provide the income to allow people to get by and set their children up for future success. North Carolina policymakers have violated that promise, both with their policy choices that make it more difficult for North Carolinians to connect to good jobs and with their failure to enact the policies that make sure work translates into greater economic security.
The national economic recovery began in 2009, but it has yet to reach North Carolinians across the state. Too many workers have failed to find work or left the labor market for lack of jobs in their community. Far too many who are working find their wages falling short of what it takes to make ends meet and otherwise contribute to their communities’ improvement.
This is a divisive time in America. One contributing factor is nearly 40 years of economic stagnation, with some workers, families and communities going backwards economically. Particularly when political leaders fail to offer those hurt by a restructuring economy a realistic promise of better days, anger and despair can spread and undermine the fabric of our society. Some may even be lead to resent “other” groups—to think that their lack of progress results from the undue gains made by another group.
The State of Working Pennsylvania 2016 documents the reality of difficult economic times for many groups. It tells a fairly simple story: most Pennsylvania workers have shared little of the economic gains of the last four decades because a tiny slice at the top has garnered so much of those gains. Whatever group people see themselves belonging to, in many cases that group has not done well. But our numbers also validate that most of those “other” groups have not done well either. The data show that if you think some “other” group is unfairly receiving some of the economic well-being that is rightfully yours, you are mostly wrong—unless that “other” group is the highest-income 1 percent.
Washington state has gained jobs at a faster rate than most other states since the Great Recession, but the majority of working families are not benefitting from the economic boom. While high tech companies are attracting thousands of newcomers with promises of high compensation, pay for the typical worker is not keeping up with rising costs. Many of the job openings across the state over the next five years will be in occupations that now pay less than $14.00 an hour – too little for even a single adult working full time to cover the basics in much of the state. Meanwhile, costs for childcare, college tuition, healthcare, and housing continue to escalate.
Growing economic inequality compounds racial and gender inequities, constricts pathways of opportunity, and deepens divisions in our society and democracy. We all lose, with less innovation, economic vibrancy, and cultural richness because so many are denied the chance to reach their full potential and pursue their dreams.
It doesn’t have to be this way. Our elected leaders make the rules for our economy. At the state level, we can also change laws directly through initiatives. That means our votes – for President, Congress, Governor, state Legislature, and on initiatives – ultimately decide who wins and who loses economically. Together, we can change economic policies so that every job provides a pathway to opportunity and supports a thriving economy.