Who Earns $15 in St Paul?

Transcription

1 The St Paul Minimum Wage Study Committee Supplement A Who Earns $ in St Paul? Committee Question Supplement SHORT ANSWER: In the City of St Paul, 3 percent of workers earn $ an hour or less, with 69 percent of workers earning more than $ an hour. For comparison, in Ramsey County as a whole, 3 percent of workers earning $ an hour or less. Note: My previous estimate of the share of sub $ workers was based on the American Community Survey for workers throughout Ramsey County was 96,000 out of 36,000 (30.%). The new data included in this memo is based on administrative data from the state of Minnesota s Department of Employment and Economic Development (DEED) and measures the number of jobs throughout the City of St. Paul. LONG ANSWER:. DATA: The Department of Employment and Economic Development (DEED) is a Minnesota state agency tasked with tracking economic trends in Minnesota, and collecting data about Minnesota workers in correspondence with federal statistical agencies, like the Bureau of Labor Statistics. DEED requires all firms that apply for unemployment insurance in Minnesota submit summary data of the earnings characteristics of their employees. DEED has agreed to produce aggregated estimates of the characteristics of the entire workforce of Minnesota, with special focus for the City of St Paul. These estimates reflect an average job count during the period from October 06 through September 07.. VARIABLES: DEED identifies the number of jobs within a geographic area according to hourly pay. Geography is determined on a location by location basis, so one firm may represent multiple Steven Ruggles, Katie Genadek, Ronald Goeken, Josiah Grover, and Matthew Sobek. Integrated Public Use Microdata Series: Version 7.0 [dataset]. Minneapolis: University of Minnesota, MN DEED (08), Labor Market Information from Unemployment Insurance wage records

2 The St Paul Minimum Wage Study Committee Supplement A locations. Hourly pay includes the hourly wage rate, as well as tips and commissions and that are reported to DEED. Hourly pay reflects labor earnings for workers who are paid by the hour and workers who are paid with a salary. If a worker is paid with a salary, total pay is divided by the number of hours worked in the pay period. Jobs are grouped together by hourly pay, if that job pays more than $ an hour, between $ and $9.66 (the current Minnesota minimum wage for firms with $00,000 in annual sales), between $9.6 and $7.88 (the current Minnesota minimum wage for firms with less than $00,000 in annual sales), and below $7.88 (a subminimum wage for select workers)..3 CAVEATS: These job counts represent averages over a period time. These numbers fluctuate from time to time. Because hourly pay includes tips, these numbers do not always reflect the wage rate that is paid by the employer. Furthermore, these numbers represent the number of jobs associated with a given wage, not the number of persons. If someone has two jobs, they will be included twice. There are,90 jobs for which hourly wage information is not available or missing, out of a total 9,86 jobs in DEED s data. Jobs with missing data are excluded from this memo.. RESULTS: Figure : Share of Jobs According to Hourly Pay (07) Above $.00 $9.66 thru $.00 $7.88 thru $ Minnesota Mpls. St. Paul The sum total of jobs paying $ or less in St Paul is 3 percent. This is a larger share of jobs than in Minneapolis, but less than Minnesota as a whole. Less than $ Source: MN DEED (08), Labor Market Information from Unemployment Insurance wage records

3 The St Paul Minimum Wage Study Committee Supplement B Who Pays $ in St Paul? Committee Questions Sheet SHORT ANSWER: In the City of St Paul, 37 percent of jobs at small firms (those with 00 jobs or fewer at their location) pay $ or less, compared to 7 percent of jobs at large firms (those with over 00 jobs at their location). There are over 7,00 jobs in St Paul associated with a minimum wage below $9.6, Minnesota s rate for firms with $00,000 in annual sales. LONG ANSWER:. DATA: The Department of Employment and Economic Development (DEED) is a Minnesota state agency tasked with tracking economic trends in Minnesota, and collecting data about Minnesota workers in correspondence with federal statistical agencies, like the Bureau of Labor Statistics. DEED requires all firms that apply for unemployment insurance in Minnesota submit summary data of the earnings characteristics of their employees. DEED has agreed to produce aggregated estimates of the characteristics of the entire workforce of Minnesota, with special focus for the City of St Paul. These estimates reflect an average job count during the period from October 06 through September 07.. VARIABLES: DEED identifies the number of jobs within a geographic area according to hourly pay. Geography is determined on a location by location basis, so one firm may represent multiple locations. Hourly pay includes the hourly wage rate, as well as tips and commissions and that are reported to DEED. Hourly pay reflects labor earnings for workers who are paid by the hour and workers who are paid with a salary. If a worker is paid with a salary, total pay is divided by the number of hours worked in the pay period. Source: MN DEED (08), Labor Market Information from Unemployment Insurance wage records 3

4 The St Paul Minimum Wage Study Committee Supplement B Jobs are grouped together by hourly pay, if that job pays more than $ an hour, between $ and $9.6 (the current Minnesota minimum wage for firms with $00,000 in annual sales), between $9.6 and $7.88 (the current Minnesota minimum wage for firms with less than $00,000 in annual sales), and below $7.88 (a subminimum wage for select workers)..3 CAVEATS: These job counts represent averages over a period time. These numbers fluctuate from time to time. Because hourly pay includes tips, these numbers do not always reflect the wage rate that is paid by the employer. Furthermore, these numbers represent the number of jobs associated with a given wage, not the number of persons. If someone has two jobs, they will be included twice. There are,90 jobs for which hourly wage information is not available or missing, out of a total 9,86 jobs in DEED s data. Jobs with missing data are excluded from this memo. Finally, job counts are reflective of jobs located in St Paul. Minneapolis wage tier based on job counts reflect the number of jobs throughout the business, even those outside city limits.. RESULTS: Table : Job Counts and Shares by Pay Rates and Firm Size for St Paul Firms (07) Count (Row%) (Column%) Hourly Pay 00 or Fewer Less than $7.87,60 (67) () 0 of More 78 (33) (),38 (00) () Although the largest share of workers $7.88 thru $9.6 3,60 (66) (),79 (3) (),9 (00) (3) have jobs at large firms and earn above $9.66 thru $.00,789 () (30) Above $.00,78 (37) (63) 6,38 () () 78,30 (63) (73) 8,37 (00) (7) 3,88 (00) (69) $, the lowest wage rates are paid most often by firms with 00 employees or 7,68 (0) (00) 07,08 (60) (00) 79,86 (00) (00) less. Source: MN DEED (08), Labor Market Information from Unemployment Insurance wage records

5 The St Paul Minimum Wage Study Committee Supplement B Figure : Share of Jobs in Pay Bracket by Firm Size (07) 00 Small firms may be Less than $7.87 $7.88 thru $9.6 $9.66 thru $.00 more likely to pay below $ than their large firm counterparts, but the majority of small firms still pay above 0 Above $.00 $ or Fewer Jobs 0 or More Jobs Source: MN DEED (08), Labor Market Information from Unemployment Insurance wage records Figure : Share of Jobs in Firm Size by Pay Bracket (07) Jobs that pay less Above $ than the current Minnesota minimum $9.66 thru $.00 $7.88 thru $ or More Jobs 00 or Fewer Jobs wage ($9.6) are most often housed in small firms. Jobs that pay above $ are Less than $ most often housed at large firms Source: MN DEED (08), Labor Market Information from Unemployment Insurance wage records

6 The St Paul Minimum Wage Study Committee Supplement C Which Industries Pay $ in St Paul? Committee Questions Sheet SHORT ANSWER: In the City of St Paul, most retail, food service, and administrative waste service, jobs earn less than $ an hour. These industries also reflect a large share of sub $ an hour jobs. In contrast, even though most health care and social services jobs pay above $, the number of jobs in this industry is so large that a disproportionate share of sub $ jobs are housed in this industry. LONG ANSWER:. DATA: The Department of Employment and Economic Development (DEED) is a Minnesota state agency tasked with tracking economic trends in Minnesota, and collecting data about Minnesota workers in correspondence with federal statistical agencies, like the Bureau of Labor Statistics. DEED requires all firms that apply for unemployment insurance in Minnesota submit summary data of the earnings characteristics of their employees. DEED has agreed to produce aggregated estimates of the characteristics of the entire workforce of Minnesota, with special focus for the City of St Paul. These estimates reflect an average job count during the period from October 06 through September 07.. VARIABLES: DEED identifies the number of jobs within a geographic area according to hourly pay. Geography is determined on a location by location basis, so one firm may represent multiple locations. Hourly pay includes the hourly wage rate, as well as tips and commissions and that are reported to DEED. Hourly pay reflects labor earnings for workers who are paid by the hour and workers who are paid with a salary. If a worker is paid with a salary, total pay is divided by the number of hours worked in the pay period. MN DEED (08), Labor Market Information from Unemployment Insurance wage records 6

7 The St Paul Minimum Wage Study Committee Supplement C.3 CAVEATS: These job counts represent averages over a period time. These numbers fluctuate from time to time. Because hourly pay includes tips, these numbers do not always reflect the wage rate that is paid by the employer. Furthermore, these numbers represent the number of jobs associated with a given wage, not the number of persons. If someone has two jobs, they will be included twice. There are,90 jobs for which hourly wage information is not available or missing, out of a total 9,86 jobs in DEED s data. Jobs with missing data are excluded from this memo.. RESULTS: See next pages for tables and graphs reporting results. 7

8 The St Paul Minimum Wage Study Committee Supplement C Figure : Share of Jobs in Pay Bracket by Industry (07) Agriculture, Forestry, Fishing & Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional and Technical Services Management of Companies and Administrative and Waste Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services, Except Public Admin. Public Administration Share of Industry Jobs with $ or Less Share of Industry Jobs with More Than $ 8

9 The St Paul Minimum Wage Study Committee Supplement C Figure : Share of Jobs in Industry According to Industry (07) Agriculture, Forestry, Fishing & Mining Utilities Construction 0 Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information 3 Finance and Insurance Real Estate and Rental and Leasing 7 Professional and Technical Services Management of Companies and Administrative and Waste Services Educational Services 6 8 Health Care and Social Assistance 9 Arts, Entertainment, and Recreation Accommodation and Food Services 6 Other Services, Except Public Admin. Public Administration 7 Share of Industry Jobs with $ or Less Share of Industry Jobs with More Than $ 9

10 The St Paul Minimum Wage Study Committee Supplement C Table /: Job Counts by Pay Bracket and Industry Jobs with / NAICS Industry Jobs with $ Pay or Less More Than $ Pay Agriculture, Forestry, N/A N/A N/A Fishing & Hunting Mining N/A N/A N/A Utilities N/A N/A N/A 3 Construction 87,33,0 (3) (0) (97) () (00) (3) 3-33 Manufacturing,37 6,8 7,08 (8) () (8) () (00) () Wholesale Trade 888,763,6 (6) () (8) () (00) (3) - Retail Trade 7,97,3, (6) () (36) () (00) (7) 8-9 Transportation and 80,633,3 Warehousing (3) () (77) () (00) () Information 30 3,99 3,60 (8) () (9) (3) (00) () Finance and Insurance 9 8,76 9,6 (6) () (9) (7) (00) () 3 Real Estate and Rental 67,606,78 and Leasing (9) () (7) () (00) () Professional and 7 6,00 6,79 Technical Services () () (89) () (00) () (Blue Row Percentages Reflect the Pattern of Pay within Industry) (Red Column Percentages Reflect Which Industries Are Responsible for Pay) 0

11 The St Paul Minimum Wage Study Committee Supplement C Table /: Job Counts by Pay Bracket and Industry / NAICS Industry Jobs with $ or Less Jobs with More Than Management of 366,97,863 Companies (8) () (9) () (00) (3) 6 Administrative and 8,0,376,88 Waste Services (66) () (3) () (00) (7) 6 Educational Services 3,8 0, 3,396 () (6) (7) (8) (00) (7) 6 Health Care and Social,93 9,7,67 (3) (9) (6) () (00) () 7 Arts, Entertainment,,03,7,88 and Recreation () () (6) () (00) (3) 7 Accommodation and 9,08,,73 Food Services (6) (6) (36) () (00) (8) 8 Other Services, Except,689,6 7,3 Public Admin. (37) () (63) () (00) () 9 Public Administration 98 0,3,3 () () (9) (7) (00) (),968 3,98 79,66 (3) (00) (69) (00) (00) (00) (Blue Row Percentages Reflect the Pattern of Pay within Industry) (Red Column Percentages Reflect Which Industries Are Responsible for Pay)