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NC Budget and Tax Center

Last week voters in four states–Arkansas, Alaska, Nebraska and South Dakota–approved minimum wage increases that will address in part the eroding value of their state’s minimum wage for workers earning at the lowest end of the wage distribution.  As of January 1st, at least 25 states will have minimum wages higher than the federal level of $7.25.

It turns out voters and state policymakers recognize that the wage floor must have some connection to what workers need to make ends meet and what wage conditions are in the labor market overall.

At Prosperity Watch this week, the Budget & Tax Center looked at the minimum wage to median wage ratio in North Carolina over time.  This ratio signals the strength of a minimum wage relative to local labor market conditions.  The lower the ratio, the fewer goods and services a worker can purchase for every additional hour worked. North Carolina’s minimum wage to median wage ratio fell from 64.4 percent in 1979 to 41.2 percent in 2013.  Find out more at Prosperity Watch here.

NC Budget and Tax Center

This week’s Prosperity Watch uses newly available data from the Economic Policy Institute to shed light on the experience of unemployment for different groups in North Carolina.  While the state performs better than the nation by having a lower barrier to employment for African-American and Latino workers in particular, the unemployment rate for these groups still remains far above where it was before the Great Recession started and is still greater than that for white workers. You can check out the full Prosperity Watch here.

The Economic Policy Institute data is presented in this interactive map that shows North Carolina’s better than average performance in the race to recovery for all groups but the continued need to focus public policies that would reduce barriers for workers of color in our state.

 

NC Budget and Tax Center

We keep hearing that North Carolina’s economy is turning around. But while it’s true that we’re slowly making progress in replacing the jobs lost during the Great Recession, the bad news is that the overwhelming majority of these new jobs just don’t pay enough to make ends meet. In fact, many don’t pay enough to keep workers out of poverty, despite working full time. Check out the latest Prosperity Watch for details.

NC Budget and Tax Center

At the heart of the American Dream is the idea that hard work is supposed to pay off—that anyone who works a full time job should be able to make ends and achieve upward mobility over the course of their lives. As discussed in the most recent issue of Prosperity Watch, however, seismic shifts in the global economy away from manufacturing and towards services have pushed this dream further and further away from too many of North Carolina’s workers. See the latest Prosperity Watch for details.