Today, the Bureau of Labor Statistics released its January jobs report, showing that 257,000 jobs were added last month. Increasing jobs is great news, but only if those jobs allow workers and their families to make ends meet.
The numbers have been praised, especially the average hourly wages that “soared 12 cents” to $24.75. While wages did increase in January, that “soaring” was compared to a decrease in wages in December, and was only 7 cents higher than wages reported in November. Additionally, 20 states increased their minimum wage in January, which would on its own increase average hourly wages.
In the latest installment of the Job Gap Economic Prosperity Series, “Low Wage Nation,” we show that most of the country’s job growth is in low wage jobs paying less than $15 per hour. Occupations like retail sales and food service top the list of jobs with the most new openings, yet these occupations have some of the lowest wages in the country.
Such jobs do not pay enough for a single adult to make ends meet, let alone a parent with children. Additionally, women and people of color are also overrepresented in these low-wage occupations, leaving them less likely to earn enough to provide for themselves and their families.
Nearly half of all new job openings are low wage, and nationally there are seven job seekers for every job opening that pays at least $15 per hour. That means that six of those seven job seekers must either take a lower-paying job, or go without work, as there aren’t enough jobs of any wage level for all of the nation’s job seekers.
“There are still too many people out of work, and too few living wage jobs to go around. We need to invest in good paying jobs and celebrate once our workers are able to make ends meet,” said LeeAnn Hall, executive director of the Alliance.
Increasing the minimum wage does help increase workers’ wages across the board – we saw some of that in January’s job growth, and we can see more if more cities and states increase their minimum wage.
However, we also need to increase the number of jobs available that actually pay a living wage by investing in good paying jobs, like those in the health care industry. Once our workers are able to make ends meet, it will truly be cause for celebration.