Low-wage workers in Pennsylvania are missing out on the pay hikes taking effect in 22 other states and 43 cities and counties this month, through increases in their minimum wages.

Stephen Herzenberg, economist and executive director of the Keystone Research Center, said Pennsylvania is surrounded by neighboring states all are ringing in the new year with higher minimum wages. Since 2009, Pennsylvania's minimum wage has been $7.25 per hour, which he said hurts workers, the economy and small businesses.

"A higher minimum wage would increase the pay of 1.4 million Pennsylvania workers and create more economy-boosting jobs, with wages high enough to increase worker buying power at local businesses," Herzenberg explained. "A higher minimum wage will also benefit Pennsylvania small businesses who can't find or keep workers now because they pay too little."

Herzenberg pointed out people working in low-wage industries are paid $1 to $1.50 less per hour in Pennsylvania than in neighboring states. But backers of the current minimum wage said increasing it would be difficult for small business owners, who might then have to cut jobs or raise prices.

It is up to the General Assembly to set the minimum wage, and Herzenberg noted the new year might bring a change. The state House passed House Bill 1500, legislation to raise the minimum wage to $15 an hour by 2026. The idea has bipartisan support, but the Senate has not yet acted on a similar bill, Senate Bill 743.

"This bill would increase the minimum wage to $11 an hour immediately, and to $15 an hour by 2026," Herzenberg noted. "Pennsylvanians need to contact their state senator and urge them to support raising Pennsylvania's minimum wage so that our lower-wage workers earn enough to support their family."

He added the purchasing power of a dollar also has declined since the last minimum-wage increase. Ultimately, low-wage workers in the state have seen their buying power decrease by 30% in the past 14 years.

Minnesota is moving closer to ensure all workers are eligible for the state's minimum wage of $10.85 an hour.

The Legislature has been taking action on a labor policy bill which includes a provision to essentially do away with minimum-wage carveouts. If passed, certain groups of workers, such as those hired by small businesses and employees 18 and younger, would no longer have to settle for the lower wage of $8.85 an hour.

Sen. Jennifer McEwen, DFL-Duluth, defended the changes during a Senate floor debate.

"Our businesses in Minnesota are prepared to have a good quality of life for the people in their businesses," McEwen stated.

Republican senators argued the state is creating a burdensome environment for small businesses. The provision in a larger bill also raises the cap on annual wage adjustments tied to inflation from 2.5% to 5%. The omnibus bill cleared its final legislative hurdle Wednesday and now goes to the governor.

Some GOP senators said they acknowledged higher consumer costs are making life hard for low-wage workers.

Sen. Gene Dornink, R-Brownsdale, worried about the tone being set for small businesses.

"Unfortunately, some of the mandates that we've continued to pass over these last few years have made it so businesses are getting discouraged," Dornink contended.

Democrats countered their approach is not about mandates but rather boosting the dignity of workers propping up the state's economy. As for other provisions within the labor bill, there are new requirements for salary transparency in job postings, as well as child labor protections.


get more stories like this via email

North Dakota is in the top half of states for average weekly grocery bills and a new national report detailed how consumer debt is bridging the gap for households having a hard time covering food expenses.

Policy experts said grocery price increases have outpaced overall inflation. Findings from the Urban Institute showed in 2023, 60% of adults reported their families used credit cards to buy groceries and 7% were not able to make minimum monthly payments on the charges. Nearly one in five dipped into savings to maintain their food supplies.

Kassandra Martinchek, senior research associate at the Urban Institute, said the report reflects the financial strain some people are feeling.

"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek observed. "Something like losing their job."

For those taking advantage of Buy Now, Pay Later options for groceries, 37% reported missing payments on loans. A separate report earlier this year found North Dakota is just below the national average for grocery expenses. However, it is still 23rd highest in the nation, sitting above neighboring states.

Even if food prices start to come down, Martinchek emphasized missed debt payments during the price hikes could have lasting effects.

"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek explained.

She added it is especially the case for historically disadvantaged households. The report suggested policymakers strengthen social safety nets to help these families as pandemic aid expires. But increasing payments under programs like the Supplemental Nutrition Assistance Program might be hard in a divided Congress. Another recommendation called for bolstering credit counseling and debt management services.


get more stories like this via email

It's graduation season, and in Minnesota, it's not just high schools and universities sending off waves of students. Organizers say they're seeing a lot of people complete apprenticeship training for careers in the construction trades.

Building Strong Communities is a statewide apprenticeship program that prepares future construction workers over a 12-week period. At its spring graduation at North Hennepin Community College, 105 men and women received their certificates.

Rick Martagon, executive director of Building Strong Communities, said that's up 41% from last year, which coincides with a growth in a more diverse group of apprentices, including older students.

"And a lot of people are making a career change as adults who have been in the workforce for quite a while. And they're interested in doing something else, and they look at the opportunities within the building construction trades and are making that change," he explained.

He thinks there's been a more intentional effort to recruit the next generation of workers in the trades, who might have concerns that the work is harder or not as lucrative as technology jobs. Martagon said starting wages are strong and earned credentials can be used all over the country. National forecasts show an overwhelming need for skilled trade workers with the renewed push for housing construction.

Analysts say the industry needs to move even faster with recruitment, as many construction workers retire. Martagon says the good news is, demand is strong for solid-paying jobs, making their outreach a little easier.

"We're in a good place right now as we see growth in retirements and a good economy, investment in infrastructure," Martagon continued.

Federal programs, like the Bipartisan Infrastructure Law and the Inflation Reduction Act, are spurring projects, including construction related to clean energy. Building Strong Communities is supported by unions around Minnesota and state grants. Leaders say a strong component is that it starts with virtual classes before hands-on training, and participants are given a true sense of what it's like to perform this work - helping them decide whether to continue.


get more stories like this via email