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State of Working Massachusetts: Wage earners saw gains last year, but haven't made up lost ground
Hourly compensation for Massachusetts' low-wage workers rose by 7 percent from 2014-2015, buoyed by an increase in the minimum wage. A new report from the Massachusetts Budget and Policy Center, The State of Working Massachusetts, 2016 Edition, highlights wage gains among all income groups, but notes that low- and middle-income wages in Massachusetts and across the nation have barely grown for decades and remain lower than in 2009.
While long-term national trends are troubling, the report found some good news locally: Massachusetts has both the nation's highest median wage and the best educated workforce (49 percent have a college degree). Looking across the country, the report finds that states with better-educated workforces consistently have higher-wage economies. Comparing cities and towns within Massachusetts shows the same close relationship between the wages and education levels.
The wage growth we see among low-wage workers who are benefiting from the minimum wage increase reminds us of how important public policy can be in improving the economic well-being of working people and their families. The challenge for our Commonwealth is to develop policies that expand opportunity and raise wages for all of our people.
- Wages in Massachusetts grew by 3 percent last year for the broad middle class;
- Other states with minimum wage increases also saw higher wage gains for low-income workers;
- Massachusetts job growth between 2007 and 2016 has been among the strongest in the nation;
- Child poverty rates in Massachusetts are below the national average and have begun to decline, but 1-in-7 children remain in poverty, a higher level than before the recession.
- Among adults without disabilities whose incomes were less than 125 percent of the poverty level, the vast majority (71 percent) work at least part-time.
The link to the MassBudget report is here.
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| The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. |
MASSACHUSETTS BUDGET AND POLICY CENTER
15 COURT SQUARE, SUITE 700
BOSTON, MA 02108
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