Archives

Uncategorized

A new study from the N.C. Budget and Tax Center confirms what a lot of worker advocates have been saying for some time: average North Carolina workers are working harder and more productively than ever but their their wages are stagnant or falling. Meanwhile, high end jobs continue to grow, thus contributing to a two-tier labor market in which mid-level wage employment is disappearing as the jobs are outsourced overseas.

Here are the key findings:

  • The economic recovery from the Great Recession is different from any recovery in the last 30 years, as seen in unprecedentedly sluggish job creation and, perhaps most obviously, falling wages.
  • A unique feature of the current sluggish recovery is the productivity gap, in which—for the first time in 30 years—rising worker productivity (a key driver of economic growth) is not being rewarded with higher wages.
  • This productivity gap has contributed to the emergence of a two-tier labor market, with growth in low-wage and high-wage occupations, but little growth in between. The result is the worst wage inequality seen in 30 years.

Read the entire report by clicking here.

 

Uncategorized

A new report released Tuesday by the National Low Income Housing Coalition (NLIHC) shows a mismatch between the cost of rental housing and the wages people earn day-to-day.

Out of Reach 2012 finds in North Carolina the Fair Market Rent (FMR) for a decent, two-bedroom apartment is $709 a month. A person working the standard 40-hour work week would need to earn roughly an hourly wage of $13.63 to cover their rent and basic utilities.

Now if you make minimum wage ($7.25), you would need to have two full-time jobs or work roughly 75 hours each and every week to be able to afford that same modest apartment in the Tar Heel state.

Across the country, with more families opting to rent over home ownership, vacancy rates are down and rents are trending higher. NLIHC notes that is placing an even greater burden on extremely low-income households, including seniors and those on a fixed-income. And the problem has only gotten worse in recent years:

Despite the immense need, the supply of low-cost rental units is actually shrinking, as more units are converted to serve higher income tenants or fall into disrepair. According to recent ACS [Census] data, the number of units renting for $500 or less fell by one million from 2007 to 2010, and during that same time period, the number of units renting at $1,250 or more grew by two million units.

To read the full report, which includes a look at rental housing in all of NC’s 100 counties, click here.