HARRISBURG, Pa. – Not only would raising the state's low-end pay not cost jobs, a new analysis finds a $10.10 Pennsylvania minimum wage actually would add thousands of jobs.
Mark Price, an economist at the Keystone Research Center who did much of the research, says for years people assumed raising the wage floor would mean more unemployment.
But he stresses repeated studies have found that's not the case. In fact, he says a $10.10 minimum would boost spending enough to create 6,000 jobs in the state.
"My spending is someone else's income,” he points out. “You are raising wages for a group of workers who tend to spend every dime, and they spend it in the local economy. That in turn generates income for somebody else."
Price says the new state minimum would benefit 1.2 million Pennsylvanians and put $1.8 billion more spending into the economy.
Critics of the minimum wage say it pushes some workers out of the job market.
Price says if the level were set too high, that might be the case. But he says what economists have found is that rather than causing massive layoffs, moderate increases in the minimum wage – enough to keep up with inflation – more often motivate employers to find ways to make the employees they have more productive. And that is good for the economy as a whole.
"We don't dig trenches anymore with hundreds of thousands of people with shovels,” Price points out. “We dig them with large capital equipment and a highly skilled worker. You get that kind of innovation as you allow the wage floor to rise over time."
Price adds one of the first studies that found no job losses looked at fast food restaurants around the Pennsylvania/New Jersey border after New Jersey raised its minimum wage. He says other studies have confirmed that finding since.
He says this new analysis found a larger proportion of employees in rural parts of the state would get a raise. In fact, Price says a $10.10 per hour minimum would boost the wages of more than a quarter of rural workers.
"There's a disproportionate share of workers in rural communities that would benefit from an increase,” he maintains. “Twenty-seven percent of the workers in rural communities would get an increase in their earnings."
get more stories like this via email
The White House is fielding pitches from top Democratic lawmakers about their desire to dramatically expand student loan forgiveness.
While a politically divisive topic, the idea has support in North Dakota, especially from those teaching future generations of professionals. The Biden administration has been considering whether to take executive action on canceling student loan debt, with possible income caps and other eligibility requirements.
Cody Mickelson, a teacher at Jamestown High School, said while his loans were not as much of a burden compared with younger teachers, he feels action is needed.
"I think it's a great opportunity for our country to invest in itself while also getting something out of that investment," Mickelson contended. "Because let's face it, student loan forgiveness doesn't mean I'm gonna go and waste my talents if I'm forgiven for those loans. It's just gonna help me believe that my country believes in me."
He emphasized if teachers feel supported, it bodes well for schools and students.
The North Dakota AFL-CIO said overwhelming debt blocks pathways toward the middle class. While some Democrats want debt as high as $50,000 canceled, the administration views a lower threshold. Skeptics say it is not fair to workers without loans or those who have paid them off, while arguing taxpayers could see a ripple effect.
Mickelson also is president of the Jamestown Education Association. He noted even though there are existing forgiveness programs, there are barriers in states such as North Dakota to make them work. He added aspiring teachers need fewer headaches in pursuing their dreams.
"It's not helpful when the price of college becomes prohibitive to good people wanting to do something for either themselves, their country or the students in our country," Mickelson asserted.
He stressed teachers like him have to go through extra hoops to take advantage of existing relief if they have their loans through the Bank of North Dakota. According to industry trackers, North Dakota and Mississippi are the only states without a dedicated student-loan forgiveness program.
get more stories like this via email
A new report found dishonest employers steal from some 213,000 people in Ohio each year by paying them less than the minimum wage; and it is just one type of wage theft.
According to the analysis from Policy Matters Ohio, other forms of wage theft include nonpayment for all hours worked, not paying time and a half for hours worked overtime, and misclassifying workers as nonsalaried to avoid overtime pay.
Ernest Hatton of Cleveland said he experienced wage theft at a time when he was working a security job for nearly 60 hours a week.
"My supervisor asked me if I would mind if they would take away eight hours in exchange for a vacation day because payroll couldn't handle the amount of money that they claimed I was going to make, so they needed to offset that," Hatton recounted. "I didn't know that was illegal."
Among wage theft victims in Ohio, 8% of victims of wage theft in Ohio earn $11.44 per hour or less. The average victim loses $55 per week, which equals about a quarter of their pay, based on the minimum wage, which amounts to more than $2,800 a year on average.
The report found Hispanic people are 71% more likely to become victims than their white counterparts.
Ghandi Merida of Cincinnati, a wage theft victim from Mexico, believes an employer who stole wages from him intentionally recruited Hispanic workers.
"And they promise, like, $30 or $27 when he only pays $20 and $22," Merida asserted. "He just wants to take a lot of advantage of Hispanic workers because (they) cannot speak English, and they cannot say anything, so you can't speak up for yourself."
Sen. Sherrod Brown, D-Ohio, introduced the Wage Theft Prevention and Wage Recovery Act, which he said will crack down on wage-theft practices and empower Ohioans to fight back.
"So many workers never report these violations," Brown noted. "Why? Because they're afraid of retaliation. I mean, who holds the power here? These are rarely union shops, so companies hold the power. "
At the state level, the report calls for requiring employers to provide pay stubs, so workers are better informed of wages; beef up wage and hour enforcement; and recognize informally classified workers as employees who can be protected by labor laws.
Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.
get more stories like this via email
North Dakota has seen recent examples of staffing shake-ups among certain employers where a toxic environment was cited. It coincides with rhetoric about the need for companies and agencies to offer a more compassionate work setting.
Earlier this year, Fargo Police leaders publicly responded to reports of low morale among officers. Similar issues prompted an internal investigation within Cass County Human Services.
Dr. Hope Umansky, a psychological consultant for Innovations Advocacy Group, said those in management need to pay closer attention to how the workforce has responded to the pandemic.
"I don't think people, with the shift in the last two years, are going to put up with just neglecting their families, their homes, their kids anymore," Umansky contended. "A good thing has been a reset toward, 'We don't need to be so busy all the time.' You know, like it's not healthy for anybody."
She emphasized the mindset includes no longer feeling a sense of loyalty to a job if the person doesn't think they are valued by management.
A recent report from MIT Sloan Management looked at turnover data during the "Great Resignation." Researchers found a toxic culture was the leading predictor of attrition.
Umansky pointed out employers who do not look inward and improve leadership will face more instability, which could threaten the company's future.
"If your [organizational] structure, your staff, your people aren't healthy psychologically and happy and thriving, the business isn't going to grow," Umansky stressed.
She added while it's not an issue of ageism, younger generations have different expectations of a work-life balance. She suggests because it has been harder for them to obtain financial security, they have a different set of priorities as it relates to work.
get more stories like this via email