CHARLESTON, W.Va. – They work hard to get you a hot cup of coffee in the morning or a quick dinner at night, but many minimum wage fast-food workers depend on public assistance to feed their own families.
According to research from the University of California at Berkeley, more than half of the country's fast food workers are now in public assistance programs.
Sean O'Leary, a policy analyst with the West Virginia Center on Budget & Policy, says his organization’s research shows that many of these workers are actually trying to support families on minimum wage, no-benefit jobs.
"But if you're working on the minimum wage right now, your wage is set below the poverty level,” he adds. “Two-person poverty threshold is above what a full-time working 40 hour a week 52 weeks a year worker can earn at the minimum wage."
According to the Berkeley study, public assistance for fast food employees costs U.S. taxpayers $7 billion a year.
UC Berkeley economist Sylvia Allegretto says the research uncovers broader problems in the U.S. economy.
She says corporate profits as a share of national income are at record highs, while the share going to workers is at a 55-year low – and falling.
"Low-wage workers really took it on the chin during the Great Recession,” she says. “Hours cut, pay that was frozen or cut. And now that the economy is growing again and corporate profits are soaring, the workers are not sharing in those benefits."
According to O'Leary, nearly 200,000 West Virginians would get a raise if the minimum wage increased to $10.10 an hour – enough to get many off public assistance.
Critics charge that would increase unemployment by forcing fast food restaurants to lay off workers or cut hours.
O'Leary counters that it actually it wouldn't increase costs that much, even at fast food places.
"That's where most of the minimum-wage jobs are, are in the service sector and the retail industry and in the food service sector,” he explains. “But while raising the minimum does increase business costs, it's not really a huge cost."
get more stories like this via email
Nevada now supports 1.5 million jobs, according to a new report.
The Nevada Department of Employment, Training and Rehabilitation's January 2023 economic report showed the number of jobs in the state is up 6% over the past year.
David Schmidt, chief economist for the department, said the state has continued to recover from the COVID-19 recession and is continuing to add jobs across various sectors. He noted the only exception is the leisure and hospitality industry, which is sitting at about 85% of the employment level it was pre-pandemic.
"We have also seen a shift in where jobs are," Schmidt pointed out. "We are growing in areas like transportation, warehousing and utilities. We are growing in the manufacturing industry. We are growing in construction and professional business services."
Schmidt emphasized the report also showed the state's seasonally adjusted unemployment rate rose to 5.5%, the highest unemployment rate of any state. Schmidt stated the high jobless rate and large number of available jobs reflects what he called an ongoing tight labor market.
Schmidt explained the report tells two stories: It shows the state's employment growth is strong, with the highest employment growth in the country over the last year, about one percentage point higher than Texas, which came in at 5%. Schmidt added many times unemployment is associated with a bad economy, but he thinks in Nevada's case it means people are engaged with the labor market and looking for the right gig.
"Nationally there is also this very high number of job openings relative to the number of people who are unemployed overall," Schmidt observed. "In Nevada that ratio is a little bit better than in most states. We only have about 20,000 more job openings than people looking for work."
Schmidt also pointed to data from the Bureau of Labor Statistics, which showed in both Nevada and the U.S., more people are quitting their jobs versus being laid off.
He said the ratio between separations has never been so high, which tells him workers have more power and more ability to go after preferred wages, benefits and working conditions.
get more stories like this via email
Tacoma Art Museum workers are rallying Thursday outside the museum while the Board of Trustees meets, to call for recognition of their union from the Board of Trustees, again.
Workers went public with their union in October but could not include security workers in the union unless the museum voluntarily recognized them.
Carrie Morton, store manager at the museum, said the union is necessary because workers have not been involved in decision-making.
"We all deserve to have a safe place to work, we all deserve to have transparency in our workplace, and we all deserve to feel safe and protected and not have to worry about being punished for speaking out," Morton argued.
The Board of Trustees initially said it refused recognition because the museum is searching for a new executive director. Board members also say the union should be split in two because conditions for security workers are different from the rest of the museum.
Stephen Rue, lead preparator for the museum, said the security workers would be excluded from the union because of a section of the National Labor Relations Act passed in 1935. He pointed out the exclusion has its roots in a racist practice from the era.
"As a small museum with not that many workers, having one union to represent all is not only more efficient, but it's more equitable," Rue contended.
If the union is certified, it would be the first representing all workers in a museum in Washington state.
get more stories like this via email
As policymakers consider solutions to North Dakota's child care crisis, a state agency is moving forward with incentives they hope will compel more workplaces to help staff with care costs.
The Health and Human Services department is asking employers to participate in a pilot program. It offers matching funds when a business provides at least $300 in monthly benefits to an employee who has a child between zero and three years old and signed up for care at a licensed facility.
Kay Larson, early childhood section director for the department, said they hope removing the cost burden will prevent parents from taking long pauses in their careers.
"Families with young children often face the greatest economic pressure, and they're making critical decisions about how and if they can reenter the workforce," Larson observed. "And then they're considering that cost of tuition. "
According to Kids Count researchers, North Dakota families each year are paying between nearly $8,000 and nearly $10,000 on average for child care. The pilot program is being funded with federal pandemic relief aid. State lawmakers are considering a similar long-term initiative as they debate a range of child care proposals this session.
As for the current funding, Larson noted they anticipate it will last for at least the next couple of years.
"North Dakota set aside just over $9 million for this," Larson pointed out. "We're anticipating we can help over 1,000 infants and toddlers in this process."
In getting payments from both the state and their employer, she emphasized it could make a big dent in monthly child care costs for families. There are eligibility requirements for workers to receive cost-share subsidies. While employers can go as high as they want in offering monthly child care benefits, North Dakota's limit for matching funds is $300.
get more stories like this via email