Understanding Low-Wage Work in West Virginia

The report reveals the shifting role of low-wage work in the state’s economy, now its main source of job growth, and a path no longer confined to young workers entering the workforce. The complete picture of West Virginia’s economy shows growth in low-wage industries, while non-low wage industries decline, and wages stagnate for both.

“Low-wage work has a profound impact on West Virginia’s economy, from the capabilities of workers to provide for their families, to their health and well-being, all the way to the state budget,” said Sean O’Leary, Interim Executive Director for the West Virginia on Center on Budget and Policy. “As low-wage jobs become more prevalent in the state’s economy, we must consider public policies that support these workers and their families, recognizing their importance to the state.”

Key Findings

• Twenty-three percent of the state’s workforce is employed in low-wage jobs.
• Forty-four percent of West Virginia’s workers with less than a high school diploma earn low wages, while the rate of low-wage workers who possess a high school degree or some college is 28 percent.
• Compared to the rest of the economy, employment in low-wage industries is growing very rapidly, by 14.5 percent since 2001. In comparison, employment in non-low wage industries declined by 2.8 percent, and overall employment has only grown by 0.1 percent.
• Overall, real average wages in West Virginia have grown by 9.7 percent since 2001, and 11.8 percent in non-low wage industries. In contrast, average wages in the state’s low-wage industries have only grown by 7.4 percent.
• More than one-quarter of workers in low-wage jobs in West Virginia (25.3 percent) live in poverty, compared to just two percent of non-low wage workers.
• Fifty-five percent of children live in a house with a low-wage worker.
• Over half – 57.6 percent – of low-wage workers in West Virginia earn at or below the minimum wage.
• A majority – 75.8 percent – of the state’s low-wage workers (123,970 workers) would benefit directly from an increase in the state’s minimum wage.
• The vast majority – 77 percent – of the state’s low-wage workers live in a county where housing is unaffordable for them.
• No longer a stepping stone, low-wage jobs are becoming lifelong employment, while industries that provide low-wage jobs have become the state’s dominant source of job growth.
• A living wage for low-wage workers would strengthen West Virginia’s economy, boost demand for goods and services provided by local businesses, and help increase the state’s chronically low workforce participation rate.