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State of Working Mississippi 2012 Chapter 5: ADVANCING TO A STRONGER WORKING MISSISSIPPI

February 10, 2012

Filed under: The State of Working Mississippi 2012 — Tags: , , , , , , , , , , , — admin @ 9:02 AM

After looking at the first 4 chapters of The State of Working Mississippi 2012, we have come to the final chapter. Chapter 5 focuses on recommendations.

Mississippi’s labor force remains one of the state’s greatest assets. However, the last ten years have made many Mississippi workers and their families feel less secure.

As Mississippi’s economy, jobs and workforce recover from the two recessions of the last decade, the state has the opportunity to ensure that all employers, workers and families can advance and prosper.

To this end, a variety of strategies can be implemented statewide through the state’s leadership in the private, public and non-profit spheres.

♦INCREASE EMPHASIS ON REGIONAL SECTOR INITIATIVES
Employers need skilled workers and access to quality training for their current employees. The state’s workforce also needs training to access employment with sufficient wages. Mississippi has already experienced success through sector initiatives, but a greater emphasis and more resources are needed. Further developing these efforts with state support can connect more working adults with the training and wrap-around support services they need to raise skills and gain higher wage employment.

♦KEEP POST-SECONDARY EDUCATION AFFORDABLE
Ensuring that tuition is affordable for all students is becoming increasingly important for keeping the doors of higher education open to the state’s workforce and recent high school graduates alike.

♦SUPPORT WEALTH CREATION AND ASSET BUILDING
Building assets and saving for higher education, emergencies and homeownership are important tools for growing wealth and creating income mobility across generations. Making more alternatives to high cost financial services available, strengthening consumer protections, enhancing access to financial education and connecting more unbanked families with financial institutions can all help increase wealth building among Mississippi’s households.

♦BUILD A PIPELINE FROM BASIC EDUCATION TO COLLEGE COURSES
The state stands to gain from better connecting basic skills education, GED preparation, workforce training and college courses. Improving the design of courses, so they stack in pathways from basic skills to post-secondary training, can advance more working adults without a high school degree onto a path to job opportunities with higher wages.

♦STRENGTHEN WORK SUPPORTS
For many adults, working full-time is not enough to provide for all the basic needs of their families. Adults in low-wage jobs need a variety of work supports to make ends meet. To assist these families, Mississippi needs to increase funding for affordable housing, childcare and energy assistance. Doing so helps ensure that parents can work and provide a safe, healthy environment for their families.

♦RESTORE PUBLIC STRUCTURES BY REFORMING TAX SYSTEM
Public investments should provide a quality education for all students, a healthy workforce and an infrastructure for business development that creates more jobs with quality wages. Ways to increase revenue, including adding new brackets to the income tax, closing corporate loopholes, and broadening the sales tax base to include more services, need to be considered to lift Mississippi and its workforce to greater economic competitiveness

State of Working Mississippi 2012 Chapter 4: PUBLIC INVESTMENTS, TAXES AND STATE REVENUE

February 8, 2012

Filed under: Taxes,The State of Working Mississippi 2012 — Tags: , , , , , , , , — admin @ 10:28 AM

Chapter 4 of the MEPC’s State of Working Mississippi 2012 report examines the effect of taxes on Mississippi’s working families and makes some recommendations for reform.

Taxes are important to working Mississippians not just because they represent a portion of their paychecks, but also because they fund the public structures that provide the foundation for creating jobs and building a strong economy. Employers and workers alike need quality and accessible K-12 and higher education systems, strong infrastructure and safe communities. These structures require adequate resources.  However state general fund revenues are estimated to still be down almost $250 million for FY 2013 from their peak in FY 2008.

Taxes should be equitable and structured based on a worker’s ability to pay.   While Mississippi’s tax system has both progressive and regressive elements (see definitions in Key Terms box), as a whole the state’s tax system is regressive. The table below shows that earners with lower incomes (less than $39,000 per year) pay over 10% of their income in state and local taxes, while those earning over $70,000 pay less. The top 1% of earners (those earning $319,000 or more annually) pay only 6.3% of their income in taxes.

ESTIMATED PERCENT OF INCOME PAID IN STATE & LOCAL TAXES BY INCOME QUINTILE IN 2007

The regressive tax structure exacerbates the state’s already significant income inequality. Income tax brackets have not been updated in more than 25 years. During that time, persons with higher incomes experienced substantial income gains compared with low-income residents.

In addition to reforms of the state’s tax structure, transparency is also necessary to make sure the public is getting the most out of economic development efforts, many of which are administered through the tax code.


RECOMMENDATIONS

  • Update the income tax to create higher income tax brackets and make the tax more progressive. A new rate of 6% on taxable income over $45,000 (which is $64,600 of total earnings for a family of 4) and 7.5% on income over $100,000 would bring in an estimated $117 million through the personal income tax and $150 million through the corporate income tax.
  • Broaden the sales tax to include more services. Including 21 new services in the sales tax as recommended by the Governor’s Tax Study Commission would bring in an estimated $98 million, and including all services used by households would bring in an estimated $287 million annually.
  • Close corporate income tax loopholes.  While there is no publicly available estimate of the amount of money lost to corporate tax loopholes, the measure would bring in additional revenue and make corporate taxes more fair for local businesses.
  • Require more regular review of corporate tax credits and provide information to the public in order to determine whether the tax breaks really create jobs and help the economy.
Author: Sara Miller, Senior Policy Analyst
Source: MEPC Analysis of Data from the Institute on Taxation and Economic Policy, “Who Pays? A Distributional Analysis of the Tax Systems in all 50 States,” November 2009.

 

State of Working Mississippi 2012 Chapter 3: INCOME and POVERTY

February 7, 2012

Filed under: Income & Working Families,Poverty,The State of Working Mississippi 2012 — Tags: , , , , , — admin @ 9:14 AM

MEPC’s State of Working Mississippi 2012 series continues with a look at household income over the decade from chapter 3. A post on key findings from chapter 2 illustrated that wages have not changed substantially, and a lack of change in wages relates directly to trends in household income.

Across the Mid South, households earned lower median incomes than did U.S. families overall, but changes from the beginning to the end of the decade were not the same for states around the region. Mississippi households have consistently had less income than households in neighboring states.

After falling from 2000 to 2004, Mississippi’s household income fluctuated around $37,000 for the rest of the decade. Mississippi’s household income of $36,851 in 2010 was $4,500 less than in 2000. Louisiana was the only state in the region to experience an increase in median household income over the decade.

In Mississippi, median household income varies considerably by race. While families of all demographics are having a hard time making ends meet in the current financial climate, a larger portion of African- American households struggle to cover all their basic needs and build wealth for long-term economic security. Income for white households ($46,799) was close to twice the median income for African- American households ($24,838) in the late 2000s.

Hear Ed Sivak, MEPC’s director, speak about disparities in income and employment by race on MPB’s Morning Edition radio interview.

RECOMMENDATION

ENSURE EMPLOYMENT-BASED BENEFITS KEEP FAMILIES HEALTHY AND SECURE

Adults in low-wage jobs that are part-time, seasonal or lack employer-sponsored benefits like health insurance or sick leave will often struggle to meet the needs of their families while working. For many families living below economic security a wide range of work supports are necessary to elevate families toward greater security. Programs and funding dedicated to providing affordable housing, health care, and child care are critical to move people along the path towards basic econnomic security and beyond.

Author: Sarah Welker, Policy Analyst

 

State of Working Mississippi 2012 Chapter 2: WAGES

January 30, 2012

Filed under: The State of Working Mississippi 2012 — Tags: , , , , , , , , , , , , , , , , , , , , , , — admin @ 2:51 PM

Chapter 2 of MEPC’s latest State of Working report reveals that many members of the state’s workforce have not seen an improvement in their wages during the last ten years as employers and businesses were hit hard by two economic downturns, and state and local budgets tightened.

The table in this post looks at median wages –or the middle wage- for Mississippi workers at the beginning and end of the decade. All Mississippi wages have been adjusted for inflation and are in 2010 dollars.

WAGES BY EDUCATION, GENDER AND RACE

Overall, median wages for Mississippi workers changed by $0.32 over the decade from $13.13 in 2000 to $13.45 in 2010. Mississippi’s median wage falls below Southern norms. Wages for different education levels show that increases in educational attainment lead to wage gains particularly for adults that pursue post-secondary education and college.

In 2010, the median wage for men was $14.29 compared to $12.75 for women. The gap between men’s and women’s wages remains; however, it narrowed in Mississippi between 2000 and 2010. In 2000, the median wage for women equaled 71% of men’s wages and by 2010 median wages for women equaled 89% of their male counterparts. While women’s wages advanced over the decade, two economic downturns and job loss in traditionally male-dominated industries like manufacturing contributed to the reverse effect in men’s wages.

In contrast, wage disparities between white and African-American workers have persisted at a similar level for two decades. The median wage for white workers was $15.66 in 2010 while the median wage for African-American workers was $11.02. In 2000 and 2010, wages for African American workers measured approximately 70% white workers.

RECOMMENDATIONS

Over the last decade tuition at community colleges and universities has increased more rapidly than the small change in hourly wages for Mississippi workers.  As a result, the cost of a college education now takes up a larger portion of a family’s income than it did in 2000. The rising cost of college education makes it harder for Mississippians to climb the economic ladder.

Keeping the post-secondary education affordable should remain a priority as the state makes critical decisions through the budgeting process. Mississippi needs a balanced approach that includes raising revenue instead of a cuts only approach that may threaten access to higher education.

The next State of Working Mississippi 2012 blog will feature findings on income and poverty from Chapter 3.

Author: Sarah Welker, Policy Analyst

State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

Filed under: Education,Income & Working Families,Institutions of Higher Learning,Jobs,The State of Working Mississippi 2012,Workforce — Tags: , , , , , , , , , , , , , , , , , — admin @ 10:12 AM

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Filed under: Balanced Approach,Budget & Tax,College,Education,Income & Working Families,Institutions of Higher Learning,Jobs,Mississippi Economic Recovery Resources,Poverty,Race,Revenue,Tax Expenditures,Taxes,The State of Working Mississippi 2012,Training,tuition,Unemployment,Workforce — Tags: , , , , , , , , , , , , , , , , , — admin @ 9:24 AM

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.
MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:
  • Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
  • Compares information in these areas with trends nationally and among Mid South states.
  • Examines each of these areas through the lens of race, gender and educational attainment.
  • Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.
SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

 

 

 

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE
In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES
Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT
Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.
Author: Sarah Welker, Policy Analyst