At height of expansion, Ohio workers not thriving
Special to The Truth
The economic expansion begun
in June 2009 has stretched for more than 121 months, making
it the longest in history. For most Ohioans, however,
benefits are proving elusive, according to the State of
Working Ohio, 2019: Realities and Remedies, a report from
Policy Matters Ohio. While unemployment is extremely low at
the state and national level, Ohio job growth has stalled,
Ohio labor force participation is lower than it has ever
been, and Ohio wages have not caught up to previous peaks.
“Ohio’s economy is
increasingly not delivering for working families, even in
what should be the best point in the business cycle,” said
Amy Hanauer, report author and executive director of Policy
Matters. “Inequality is way up, wages lag the nation’s and
are below previous peaks, and, despite great unemployment
rates, a record share of men have left the labor market.”
The report also finds that
state and federal policymakers have cut taxes for the
wealthiest, leaving communities with insufficient resources
to invest in the next generation, treat addiction, and
address effects of climate change like floods and lake
pollution. Additional findings include:
Wage troubles: Median wages
have been edging up since 2011, but Ohio wages remain behind
U.S. wages (an $1,100 annual deficit) and behind Ohio’s 1979
median. Nine of Ohio’s 10 most common jobs pay under $36,000
a year, too little for a family of three to afford food
without aid. With full-time work, women still earn nearly
$7,000 less a year than men and black Ohioans earn over
$10,000 less a year than white Ohioans at the median. Black
workers earn far less than they did in 1979 – $4,742 less a
year adjusted for inflation – and the gap has worsened.
Employment paradox: Ohio’s
unemployment rate – 4.5% for 2018 and 4% in June and July
2019, is almost as good as it gets (2001’s annual rate was
4%). But Ohio has never had such a large share of men who
are not working and no longer looking for work and the share
of women working or seeking work is also below previous
peaks.
Slowing job growth: Ohio
lost 9,000 jobs from January to July 2019 (preliminary). The
state remains 28,000 jobs below levels in early 2000. Ohio
lost 5,700 public sector jobs since January 2017 and
manufacturing job growth weakened substantially in 2019.
Unions help: The typical
union member earns over $10,000 more a year than the typical
non-union worker. Unions hike wages for people of all races
and genders – while most Ohio union members are white, black
Ohioans are more likely to be in a union than white Ohioans.
The report provides
remedies. “Ohio policymakers can support workers by raising
the minimum wage, enforcing labor law and encouraging
unionization. They should also fix Ohio’s upside-down tax
code, which increases inequality. Finally, let’s use that
revenue on people and infrastructure, especially in ways
that mitigate climate change, educate our kids and create
good jobs,” Hanauer said. “We can choose an economy where
every job is family-supporting. We can choose less polluting
approaches to transportation and energy. It’s up to us.”
Read online (https://t.e2ma.net/click/fidsor/bvwsuvc/ztb65we)
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