The President’s State of the Union call to “reignite the engine of growth” and create jobs sets the nation on a road toward economic security for all. A growing middle class and growing economy require ensuring equality for women and communities of color. Calls to raise the minimum wage, expand access to early childhood education, and protect critical support programs in upcoming budget fights are the right ways to build and preserve family economic security and fuel economic growth.
Income inequality has become a sad but persistent feature of life in 21st century America. Consider that today’s $7.25 minimum wage would equal $10.56 if the 1968 minimum had kept pace with inflation. The President’s endorsement of $9/hour is a beginning. WOW has reported that raising it to $9.80 over three years, as proposed last summer in the Fair Minimum Wage Act, would move a single worker from 53% to 71% of what is needed to make ends meet according to our Basic Economic Security Tables Index. A single mother with one child in infant care would move from 34% to 46% of economic security using nationwide cost averages.
Raising the minimum wage and indexing it raises the floor for many, if not most, low-wage workers, not just those earning the minimum wage. The Economic Policy Institute has estimated that the pay of 21 million workers will be directly affected in raising the minimum wage to $9 as the president proposed. That is 15 million directly and another 6 million whose wages are slightly above $9. The majority (58%) of jobs added to the economy since the Great Recession are low-wage, according to the National Employment Law Project. And many of these low wage jobs – health care and home care assistants, retail clerks, cashiers and restaurant workers- are filled by women.
As we work to improve the quality of all jobs, it is important that policy makers take steps to ensure equal access by women and people of color to new jobs in high-tech manufacturing, infrastructure and the skilled trades, where they are currently underrepresented. At the end of World War II, women constituted 25% of workers employed in the production of durable goods. Since then, women have not held more than a minute fraction (generally less than 3%) in such higher-paying jobs as electricians, carpenters, operating engineers and HVAC operators. During the recovery, women actually have been losing many of the relatively few positions they held in the manufacturing sector while men have gained them. Research has shown that women have the aptitude for such work and a strong interest when informed of the career and economic potential. WOW’s provision of technical assistance to eight workforce development partnerships in green job training has resulted in a doubling of women’s enrollment, graduation and placement ranging from 28% to 31% per project.
