News Release
NEW REPORT EXAMINES WORKING WEST VIRGINIANS IN A CHANGING ECONOMY
December 2, 2008 -- In the midst of the nation’s economic struggle, there are some hopeful signs for West Virginia, according to a recent report by the West Virginia Center on Budget and Policy. An analysis of the past three decades reveals an increase in per capita income, a reduction in poverty, and greater participation of women and Africans-Americans in the workforce.
Despite these gains, West Virginia has a long way to go to achieve parity with the nation. The state ranked 49th in per capita income in all but nine years since 1979. Job growth during this period was one-third of the national average. Worker benefits, such as health insurance and retirement accounts, were seriously eroded.
The report, “The State of Working West Virginia,” is the first in recent years to provide such a comprehensive and in-depth analysis of workforce trends and issues.
“Economic forecasts suggest that we’re going
to see some significant downturns in the near future,” said Ted
Boettner, co-author of the report and director of the Center.
“But we also have the opportunity to make meaningful changes in
policy that address fundamental problems and lead to a more
broadly shared prosperity.”
West Virginia jobs increase in numbers, but decline in
quality.
West Virginia jobs increased by 15 percent since 1979, but
higher-paying manufacturing jobs have dropped by more than half.
In addition, union-covered jobs fell by nearly a third during
the past two decades. The net effect has been a decline in the
median hourly wage (from $14.87 in 1979 to $14.06 in 2007).
During the same period, more than a quarter of the workforce
lost employer-based health plans, and nearly a quarter lost
pension coverage.
“The erosion of wages and basic benefits is disastrous for
working families,” said Boettner. “In 2006, more than a third of
the jobs in West Virginia paid less than the federal poverty
level. Our child poverty rate consistently ranks among the
highest in the country.”
Economic disparities persist within state’s workforce.
Serious disparities persist not only between our state and the
nation, but also within the West Virginia workforce. For
example, West Virginia men make a third more than women earn,
and white workers make nearly 40 percent more than black workers
do.
The gap between high and low wage earners continues to grow,
with the state’s highest-income families making 7.5 times more
than the lowest-income families do. In addition, high earners
pay a smaller portion of their incomes in taxes. After federal
credits are applied, the highest-income West Virginians pay less
than 7 percent in state and local taxes, while other workers pay
over 9 percent.
Policy changes can improve economic security and
fairness.
The report concludes with a number of policy options aimed at
boosting the state’s economy and rewarding workers for their
labor, such as:
- Making work pay by raising the minimum wage and instituting a refundable State Earned Income Tax Credit modeled after the Federal Earned Income Credit.
- Expanding access to health care and retirement accounts for workers who don’t receive these basic benefits through their employers.
- Making sound investments in the education of our current and future workforce and in sustainable economic development.
“West Virginia went through horrendous times during the 1980s and early 1990s,” said Rick Wilson of the American Friends Service Committee – WV Economic Justice Project and co-author of the report. “The fragile gains we’ve made in recent years could once again be threatened by national and global trends. Now more than ever, we’re going to need state and national policies that benefit everyone and not just a few."