Media
Colorado’s economy, on the surface, is humming along with unemployment rates at historic lows and some of the strongest job gains in the country.
But a closer look shows that median hourly wages are stuck; many of the new jobs being added are low-paying; and thousands of working-age adults remain disengaged from the labor force, according to the State of Working Colorado report from the Colorado Center on Law and Policy.
“We have another year of strong job growth in the state and unemployment continues to drop. But the indicator of how the economy is performing for the majority of workers — wages — still isn’t moving,” said Michelle Webster, manager of research and policy analysis with the group, which advocates on behalf of low-wage workers.
How are Vermont’s workers and their families doing?
Economic growth is tepid, but even the modest gains are not making it to most Vermonters’ paychecks. While the share of families struggling financially might not be as large as elsewhere, it continues to creep up. And while the unemployment rate is low, fewer people are working.
In other words, Vermonters are doing about as well, or as poorly, as they’ve done for more than a decade.
Why no progress? Part of the reason is that many policymakers are thinking backwards. They hope that when and if the economy improves, wages and tax receipts will rise, the state will be able to meet its residents’ needs, and Vermont’s prosperity will be more broadly shared. The data in this report suggest otherwise. To get the trend lines moving in the right direction, we need to flip our thinking—to start with the premise that addressing the needs of all workers and families is the way to strengthen the economy.
Colorado has one of the strongest performing economies in the country. Job growth has been robust for the past several years, consistently ranking Colorado among the top states for job creation. The unemployment rate has dropped steadily since 2010 to 3.3 percent in 2016. Real median household income continues to grow and is now slightly above the pre-recession level. And poverty rates have fallen since 2012, dropping to 11 percent in 2016.
Yet, this report points to several challenges to achieving an economic recovery in Colorado that is broadly shared and enduring:
- The median hourly wage has been falling or flat since the recovery began.
- Economic gains are increasingly concentrated among a small share of high earners in the state.
- While jobs have returned to the state, not all workers have returned to work.
- Colorado is increasingly becoming a multiracial state with a persistent race-based economic divide.
The goal of the Working Families Benchmarking Project is to identify economic and related issues affecting Utah families and examine them through a comparative lens, evaluating Utah using a peer state as a benchmark. Many existing economic comparison studies and rankings look at the economy as a whole or at its impact on specific sectors or employers. This project seeks to augment those very useful comparisons by focusing on how the economy is experienced by moderate- and lower-income families. It is these families whose children are most at risk of not achieving their potential in school and later in the workplace. Thus, how they experience the economy is of particular interest to Voices for Utah Children.