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State of Working Mississippi 2012 Chapter 2: WAGES

January 30, 2012

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

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


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