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Report: California Labor Policy Not Keeping Up With Changing Workforce

Report: California Labor Policy Not Keeping Up With Changing Workforce
Report: California Labor Policy Not Keeping Up With Changing Workforce
Report: California Labor Policy Not Keeping Up With Changing Workforce GUESTS:Chris Hoene, executive director, California Budget and Policy Center Peter Brownell, research director, Center On Policy Initiatives

Emily -- many of a celebrated the holiday as the official end of summer. But the policy reduced a new study on the California work-study. The state's labor force has become more diverse and finds more workers earning lower wages. The study says California's workforce is changing and how it needs to change with it. Chris Amy is with me to talk about it. Peter Brown also joins me from the policy of initiative for from here in Chicago. Chris, the states demographic has shifted over the years. Do these results affect these changes. Absolutely. We decided to take a step back and take a look at the market over the last three or four decades and how that workforce is changing and what policy that needs to change with it. We found that California's work force -- is much more divorce -- diverse. 325 is of color were 3 to 5 -- -- decades was 30%. The wage trends for low and Midshipman trade over that same period is showing those wages have been declining adjusted for the economy and other factors. We have challenges moving forward. Chris can you tell me the ranges that the study looked at? As far as family work dynamics, the diversity of the workforce and different population -- Latino, education level, households. Just a broad range of the workforce overall. You said the workforce is gotten more divorce -- diverse. What about the women? It has changed a lot. It has grown dramatically over time. That is a story that is been consistent. Over the years women's participation has continued to grow but has slowed a little bit. But more specifically in the last economic expansion the number of hours worked by women has been increasing. We are also seeing more households that all parents in the household are working which is a need for low child care. And that increased also didn't it? It did. When all of the adults are working in the women are participating in working more and longer hours, it promotes policy changes. Subsidized childcare and daycare and there are not enough slots for people that need them. That makes it harder for people that are staying in the work force for the type of care that they need to work consistently. Does this study the diversity of the work force in San Diego? Yes. What is happening on a state level is also happening here which you also reported in July that tracked many of the same demographic changes in terms of racial ethnic composition over time in the population of San Diego. As we look forward the younger population is more diverse in to be Latino or Pacific Islander. Is that continues to grow we expect that to continue over time. Chris, the most striking is that wages have gone down for many workers in California. Tell us about that. We looked at wage levels for different cuts of people in the workforce. Comparing people by the percentile. We looked at the highway sector, the 80th percentile and above versus mid-wage workers of the 50th the 80th percentile and above versus mid-wage workers of the 50th percentile in low-wage at the 20th percentile. Which you see looking back to 1979 two 2014 is that the mid-wage in low-wage workers has seen their wage a road over time. While highway workers of same significant increases. What we would like to see is all of them increasing. They are saying there and come in road over time. Significantly, it you saying that average of white workers wage was 14% increase in Latinos and black workers had gone down in San Diego. Yes. We definitely scene changes in communities of same Diego and what was available with low in mid-wage work. It was distinctly pointed for Latinos and African-Americans. Some of this is an ongoing story but it continues to be a persuasive problem which means we need help on the policy front to help those communities. How you determined wages in this study, it doesn't mean that they actually brought home a lower number in their paycheck of 1979, it means they are low-wage percentile has increased. Right? It is both. We have the percentage change in the hourly wage for that group in the percentile, so when we say mid-wage and low-wage work there's it does actually mean what is happening to their paycheck when you adjust for cost and inflation. Peter, is this also happening in San Diego? Yes. Especially since the recession earnings and wages went down and now the bounce back of the real estate, that has really remained stagnant at that point. I want to ask about the view what is the reason for that. There has been a lot of changes in the labor market. One of the issue is that I will point to is that minimum wage as Chris mentioned as we have not seen the adjustment in the state's minimum wage of the cost of living has not kept up with the cost of living wages. So their actual earnings are eroded over time. Which you point to that as well Chris, --? Yes. Even with the state increasing minimum wage over years, when fully implemented will still be below 1968 levels when you adjust for inflation cost-of-living. That means that the folks that are trying to get by with a couple of minimum wage, it is hard to keep up with mortgage and child care, etc. What about people commenting on middle wage jobs dried up. That this study mention anything about that? Research has shown big economic forces so there are reasons why taken -- technology change which affects different jobs. Long-term trends such as unionization and protection for employees related to the loss of benefits in the public and private Secretary -- cutting benefits as far as pension and retirement. He also had to take into consideration the cost of housing in the urban area, such as San Diego. It is hard to sustain a quality of life that is viable. You have to consider what cost of life is sustainable for a low income family. You said the policy -- state policy has to change. Why does it have to change in your opinion? For the economy to thrive, everyone will see the benefit from a thriving economy. We need worker -- workers in the low in Midshipman wage level II help. If you have a unique nation -- unionization that is not protecting the low in the mid-wage you have no one protecting them. Peter, do you think they need protection to? Yes. We have pushed for minimum wage at the city level, because the state wage due to the cost of living and cost of housing. It will go on the ballot in June or July, but the new stadium will also be on the ballot. The service jobs have replaced some of these jobs but we have added back service jobs especially in the eating and drinking which are much lower paid jobs. We have a huge number of people that are working those jobs that are college graduates that are earning minimum wage. The state minimum wage is not something that you can live on as an individual much less support a family and San Diego. Chris, this is the first time that earned income credit -- will be available for California. How you think that will affect low income? I think it will be great. If you are on the low level, you will get a significant boost and you will get a refundable credit from the state. It could be a considerable boost particularly combined with the federal earned income which could be incredible. We are making sure there is an uptake of the credit. We need to make sure that homes that have not filed previously, that if they do file there is a credit available. Finally, how do you think this report will be used? We hope it will be used to process state and local policymakers about comprehensive state policies that are designed to help grow conditions for middle and low work for us. Discuss some of the policies that we have discussed here, minimum wage, workforce education, policies that when combined can help lift and for the workers. I have been speaking to Chris and Peter, gentlemen, thank you very much.

The workforce in California is more diverse than ever but state public policy has not supported these changes, according to a new report by the California Budget and Policy Center.

The report shows 47 percent of the state's workers are women, up from 28 percent in 1950. And 58 percent are Latinos and other people of color, up from 31 percent in 1984.

The report suggests high tuition, expensive child care and other impediments have kept women and minorities from reaching their full potential at work.

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Chris Hoene, executive director of the California Budget and Policy Center, said the group examined wages from 1979 to 2014 and found that mid-wage and low-wage workers saw their salaries decline over time.

"It's a concern," Hoene told KPBS Midday Edition on Tuesday. "We have some challenges on our hands as we move forward. The fact that it continues to be a pervasive problem means we need more help on the policy side."

Peter Brownell — research director of the San Diego nonprofit that advocates for the working poor, Center On Policy Initiatives — said the decline in salaries for low-wage workers is an issue in San Diego.

"We've seen situations where wages and earnings went down," Brownell said. "Despite the bounce back (of the economy), median income and earnings have really remained stagnant here."