Study confirms what many Minnesotans know: They?re not earning enough

More than one-third of Minnesotans are not earning enough money to support a family. That?s the conclusion of the new report, Cost of Living in Minnesota, that will be issued later this month by the JOBS NOW Coalition.

The report is an updated and expanded version of research begun in 1995. Each year, JOBS NOW has researched what it costs to meet a family?s basic needs. The costs are based upon monthly budget requirements necessary to achieve a “no frills” standard of living and measures only the bare necessities ? such as housing, food and transportation. It excludes many of the expenses most people associate with a middle-class standard of living, such as entertainment, restaurant meals, vacations, and payments on debts and for children?s education.

Even with such a bare-bones budget, JOBS NOW found that many people aren?t earning enough.

Some major findings of the 2003 research:

More than one third of Minnesota?s workers earn less than a family-supporting wage. In a family of four with both parents working, each worker needs to earn a statewide average wage of $11.40 per hour just to meet their basic needs. Over 700,000 of the state?s workers make less than $11.40 per hour. This is more than the total number of workers who live in the cities of Minneapolis, St. Paul, Duluth, Rochester, St. Cloud, Winona, Mankato and Moorhead combined.

Housing costs in the Twin Cities have increased dramatically. This has pushed up the average annual cost of basic needs for a single person with one child to nearly $35,000?almost three times higher than the federal poverty guideline. To cover these costs a person must earn an hourly wage of $17.00. Over half of Twin Cities workers earn less.

Though living costs in Greater Minnesota are 20 percent lower than in the metro area, median wages are 35 percent lower.

In Greater Minnesota, wages are often so low that even childless workers have trouble making ends meet. For a single person with no dependents the average annual cost of meeting basic needs is $22?000. To cover these costs a person must earn an hourly wage of $10.60 per hour. About two of every five workers in Greater Minnesota earn less.

Nearly one-fifth (19%) of the state?s workers earns less than the inflation-adjusted minimum wage of $8.44. In Greater Minnesota, more than one-fourth (27%) of all workers earns less than this.

The report is chock full of information. JOBS NOW has figured what it costs to support seven different types of families in all 13 of the state?s economic regions. For every family budget there is an hourly wage requirement.

For the first time, an on-line version of the report will also be available with new levels of detail. This edition features family budgets and hourly wage requirements for all 87 Minnesota counties. It also has 11 more types of families than the printed version, increasing the total number of family composition options to eighteen. To see the on-line edition of the report, go to the JOBS NOW website at www.jobsnowcoalition.org

JOBS NOW also has developed a new interactive tool based on its family-budget and wage research. The new calculator software design is the first of its kind in the nation?an eye-opening economic literacy and planning tool. The calculator allows individuals to customize their own budgets according to family size and geographic location. JOBS NOW will add more labor market information?on wages, occupations, skills and training opportunities?as it becomes available. Users can then plot conditions in the labor market that would enable them to create or maintain a decent standard of life.

The Cost of Living in Minnesota Calculator can be used free of charge. To try it out, go to www.jobsnowcoalition.org/costofliving.

To order a printed copy of the report, go to the JOBS NOW website, or phone 651-290-0240.

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