Labor Day Statement from Innovation Ohio President Anti-labor policies, tax-shifting trend increases income inequality and threatens Ohio’s middle class, says McCarthy
COLUMBUS – In advance of the Labor Day weekend, Innovation Ohio President Keary McCarthy released the following statement: “Labor Day is a celebration of the American labor movement and the workers who fought for it. Every year, we honor the contributions of labor unions because they built the greatest middle class the world had ever seen. But every year it also becomes increasingly difficult to think about the middle-class without considering the sobering fact that it’s disappearing. Growing income inequality is one of our nation’s and our state’s biggest challenges. “Over the last several decades, the wealthiest Ohioans have seen their earnings grow by 70 percent while working- and middle-class families have seen their earnings decrease. Nationally, as labor union participation has declined over the last fifty years, the gap between the rich and the poor has widened. “Ohio’s elected leaders must make it a priority to reverse these trends. Stop making it harder for Ohioans to participate in labor unions. Stop the tax-shifting trend that benefits those at the very top at the expense of everyone else. Without pursuing these basic fixes to Ohio’s economy and a policy agenda that puts the middle class first, Ohio’s income inequality will grow and the promise of the American dream will continue to slip away.” [Read more…]Ohio’s Low-Wage Recovery
Research Overview
While much has been made of state job gains and reductions in the state’s unemployment rate, Ohio’s economy employs nearly 140,000 workers than it did prior to the 2008 recession. Innovation Ohio sought to explore the jobs that have been created during the state’s recovery and see whether they are comparable to those that were lost. By reviewing occupational employment data from the Bureau of Labor Statistics from 2007 to 2013, we found that:- Prior to the start of the recession in 2007, 33% of Ohioans were employed in occupations that pay, on average, more than $20 per hour, 39% in jobs paying between $13.40 and $19.99, and just 28% in jobs paying $7.00-$13.39 hourly.
- At the end of 2013, low-wage occupations had jumped to 36% of Ohio employment, while medium-paying jobs fell to 34% and high-wage occupations dropped to 31%.
Acknowledgements
Heather Madonia, Ph.D. candidate, Northwestern University served as principal researcher in preparing this analysis.Kasich Recovery Yields Low-Wage Jobs
IO: Kasich Recovery Yields Low-Wage Jobs Think Tank Study Says High & Medium Wage Jobs Decrease; Newly Created Jobs “Don’t Pay Enough to Support a Family.”
Columbus — Innovation Ohio, a progressive think tank headquartered in Columbus, released a new study today which finds that for the first time since 2007, Ohio now has more low wage jobs than medium or high wage jobs. Using Occupational Employment data from the U.S. Labor Department’s Bureau of Labor Statistics, the study also found that while 9 out of 10 Ohio jobs lost during the Great Recession paid medium or high wages, low-paying jobs account for virtually all Ohio job growth during the recovery.
Specifically:- Prior to the start of the recession in 2007, 33% of Ohio jobs paid more than $20 per hour, 39% paid between $13.40 and $19.99, and just 28% paid $7.00-$13.39 hourly.
- At the end of 2013, low-wage positions had jumped to 36% of Ohio jobs, while medium-paying jobs fell to 34% and high-wage jobs dropped to 31%.
- As a share of the state’s economy, high and medium wage jobs dropped from 72% in 2007 to just 64% in 2013. Low wage jobs grew from 28% to 36% during that period.
“Last month, Ohio led the nation in job losses. Ohio’s job creation rate ranks 41st and has lagged the national average for 20 straight months. Unlike the rest of America, Ohio is still 140,000 jobs short of where we were before the recession hit. And if all this isn’t bad enough, today we learn that the few jobs Gov. Kasich has managed to create don’t pay a living wage or enough to sustain a family. Some miracle. Some recovery. “
Read the report.
Ohio Ranks 32nd Among States in Job Creation
![50-state rankings](https://innovationohio.org/wp-content/uploads/2014/03/50-state-rankings2.png)
Ohio lost jobs in February, lags the nation in job creation
![3.21.14 february jobs](https://innovationohio.org/wp-content/uploads/2014/03/3.21.14-february-jobs1.png)
New Employment Data Shows Ohio Still Underperforming
![ohio-vs-us](https://innovationohio.org/wp-content/uploads/2014/03/ohio-vs-us.jpg)
In October, Ohio’s economy continued to lag rest of nation
Half of Ohio’s House members voted to keep government shut down, default on debts
Late yesterday, a deal was reached to end the federal government shutdown and avert a financial crisis by providing short-term government funding and an increase of the country’s debt ceiling, allowing the government to make good on its financial obligations.
Notably, Ohio’s John Boehner, Republican Speaker of the House, brought the plan to the floor and voted for its passage. In voting yes, Boehner was joined by the state’s four Democratic House members and Republicans Joyce, Tiberi and Stivers. Eight of Ohio’s twelve Republican Congressmen, however, voted no, joining with the far-right Ted Cruz-aligned wing of the party.
Eight of Ohio’s twelve Republican Congressmen voted to keep the government shutdown and default on the nation’s debts — despite warnings that doing so would be devastating to the country’s economy.
Both US Senators — Brown and Portman — voted to end the shutdown. [Read more…]
Government Shutdown will have significant impact on Ohio’s economy
- 52,000 federal employees in Ohio will be furloughed. These workers may see reductions in their pay from the time they were forced to stay home because the government was shuttered. This means less money in the pockets of these workers to pay for all sorts of services and goods from businesses in their communities.
- A shutdown could delay support for a portion of the 186,000 small businesses in Ohio. The federal Small Businesses Association administers small business loans and a shutdown would put a stop to this critical source of business credit for thousands of small businesses in Ohio.
- In Ohio, over 25,000 people are employed through the Department of Defense as civilian employees and half of them will be furloughed without pay while the rest would continue to work for delayed pay.
- Checks for current Social Security benefits will continued to be delivered during the shutdown but it is unclear what would happened for new benefits or other services offered to seniors. During the last shutdown 112,000 claims for Social Security and disability were not taken. In Ohio, 2.2 million individuals received Social Security benefits in 2012.
- During the 1995 shutdown, more than 400,000 veterans saw their disability benefits and pension claims delayed and it is unclear whether this will also happen this time. Currently, Ohio has 877,000 veterans who may experience some sort of delay.
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