There’s good and bad news this Labor Day, and it’s worth thinking about.

Friday, September 01, 2000

There’s good and bad news this Labor Day, and it’s worth thinking about.

Although the state is enjoying strong economic growth and all levels of the workforce have seen some wage gains, many working people are falling behind.

The University of Minnesota conducted the labor survey called "Making a Living? The State of Working Minnesota Labor Day 2000."

According to the survey Minnesota workers have realized many improvements in their standard of living, during the 1990.

However, the increased income is largely due to more hours worked and that basic costs – particularly housing – are out of reach for ordinary workers.

Although Minnesota’s unemployment rate has dropped to 2.8 percent, many workers – 19 percent – have a relatively tenuous connection to the workforce as part-time employees.

Minnesota’s low, median and high wage workers all saw their wages increase during the 1990s. However, these wages did not grow at the same rate and for many workers, increases in the 1990s made up for declines in the 1980s.

Minnesota’s median family income grew faster in the 1990s than in any other stage, reaching $67,140 for a family of four. However, the increased family income has come at the expense of more hours worked.

Income equality is on the rise. The incomes of the poorest 20 percent of families did not grow since the late 1970s relative to inflation. Meanwhile, the income of the middle 20 percent of families grew 16.6 percent and the incomes of the top 20 percent of families grew 42.6 percent.

Minnesota workers are finding that basic costs are rising faster than their income. Housing in particularly has become out of reach for ordinary workers. Median home prices have grown by 61 percent or more.

On Labor Day, this survey offers food for thought among working men and women everywhere.