Career Center News Recruiters fill void after immigration raids nationwide CT nursing shortage could become crisis Facing worker shortage, WV to hold job fairs Pittsburgh recruiting minorities for police, fire Column: Fired and rehired; save on gas; more Specials Meet the Members of EON - our new community  networking effort Graduate / Professional School Channel What's New with the IMDiversity site

Career Center News

By The Associated Press

Income inequality in Alabama 2nd in the nation

Apr 08 18:41

By KATE BRUMBACK

Associated Press Writer

MONTGOMERY, Ala. (AP) -- The income gap between Alabama's richest and poorest families has widened considerably over the last two decades, giving the state the second-highest level of income inequality in the nation, according to a study released Tuesday.

Only New York has greater income inequality between the top and the bottom, according to the study, "Pulling Apart: A State-by-State Analysis of Income Trends," by the Center on Budget and Policy Priorities, a nonprofit based in Washington, D.C.

The study says wages at the bottom and middle of the pay scale have been stagnant or have increased only slightly since the late 1980s, while the highest-paid employees have seen their income grow significantly, with an acceleration of that discrepancy occurring since the late 1990s.

Nationally, the income gap between the richest and poorest increased in 37 states and didn't narrow anywhere, said Elizabeth McNichol, one of the report's authors.

Kimble Forrister, state coordinator for Alabama Arise, an advocate for low-income families, said one of the main reasons for Alabama's especially wide income discrepancy is a state tax system that favors the highest earners and hurts the poor.

Forrister said the new study is especially revealing because it allows a comparison of how much workers take home after taxes and after social benefits have been applied. He said Alabama has inadequate social safety nets for its lower income workers.

The study examines family income information from the Census Bureau that accounts for the impact of the federal tax system and the value of food stamps, subsidized school lunches and housing vouchers. But the impact of state taxes is not taken into account, and income from capital gains is not included.

The study shows that the wealthiest 20 percent of families in Alabama have seen their income increase by 42.7 percent over the last two decades, while the poorest 20 percent have seen an increase of only 5.6 percent. That gives the richest 20 percent of families average incomes that are 8.5 times as big as those of the poorest 20 percent in Alabama.

Since the late 1990s, the picture has been even more bleak for Alabama's poorest families, who have watched their income drop 17.4 percent, while the top 20 percent saw an increase of 9.6 percent.

Over the last few years, there has been much talk about how well Alabama's economy is doing, with new automotive and other plants providing jobs and unemployment levels consistently below the national level. But Forrister said the economic boon has not trickled down to poorer Alabamians.

"It's clear from this study that these increases have been concentrated at the top in recent years," he said.

Forrister said Alabama Arise proposes changing the state's tax system to close a loophole that allows the wealthiest people to benefit disproportionately from a federal income tax deduction and eliminating the state sales tax on groceries. He said he was encouraged after bills to eliminate the grocery tax were approved by committees in both houses of the Legislature last week.

Another proposal to help Alabama's poorest residents, Forrister said, is the establishment of individual development accounts. This would allow certain low-income Alabamians who save $2,000 to receive matching funds from both state and federal authorities, bringing the total to $6,000 to use for education, training or starting a business.

In the U.S. as a whole, the bottom 20 percent's income has risen 11.1 percent since the late 1980s, as compared to 13 percent for the middle 20 percent and 36.1 percent for the top 20 percent. Since the late 1990s, wages dropped 2.5 percent for the bottom 20 percent, while they went up 1.3 percent for the middle 20 percent and rose 9.1 percent for the top 20 percent.

Nationally, the poorest fifth of families have an average income of $18,120, while the top fifth have an average income of $132,000 -- more than seven times higher.

The study says periods of high unemployment, globalization, immigration, cuts in manufacturing jobs and expansion of low-wage service jobs all contribute to the widening gap.

Another reason cited is a significant increase in investment income -- dividends, rent, interest and capital gains -- that are enjoyed overwhelmingly by the upper income levels.

The report also says some government policies -- federal tax cuts benefiting the wealthy in 2001 and 2003, deregulation and trade liberalization, weakening of social safety nets and the lack of effective labor laws -- add to inequality.

------

On the Net: http://www.cbpp.org/

Report: NY's lowest-paid worker's wages rising faster than average

Apr 08 20:55

LATHAM, N.Y. (AP) -- A new report from a labor-backed think tank finds that the average wage of New York's lowest-paid workers -- and the number of jobs in low-paying industries -- have risen since a hike on the state's minimum wage.

The Fiscal Policy Institute's report on income trends found the average wage among the state's bottom 10 percent of earners rose 1.4 percent to $7.84 an hour from 2004 to 2007 while the national average remained flat at $7.77.

During that time, the state's minimum wage rose $2 to $7.15.

The group's analysis of Census and federal labor statistics also found the number of jobs in retail and food services -- the largest employers of minimum-wage workers -- rose 3.3 percent between 2004 and December 2007, while total employment in the state rose 3 percent.

Other Recent Readings of Interest

• WY ranks among top for personal income growth

MA seeks to ease summer worker shortage on Cape Cod

Apr 08 15:15

BOSTON (AP) -- The state is trying to help businesses on Cape Cod and the Islands find enough workers this summer amid growing fears of a seasonal worker shortage.

Labor and Executive Development Secretary Suzanne Bump announced plans Tuesday for a pair of hospitality industry job fairs this month in Westport and Hyannis.

The state is also sponsoring media ads about the job fairs, and stepping up efforts with local business leaders to recruit college and high school students to fill summer jobs.

The efforts extend beyond the Cape and Islands, to cities such as Fall River and New Bedford.

Many businesses in the tourist region rely on foreign workers to fill seasonal jobs, and fear a change in visa rules will leave fewer workers available this summer.

Other Recent Readings of Interest

• Foreign students who come to US to work still owed pay

Lawmaker says CA retirement plan should help private workers

Apr 08 20:31

SACRAMENTO (AP) -- State Assemblyman Kevin De Leon wants to let private sector employees invest in the state's public employee retirement plan.

The Los Angeles Democrat said the California program he announced Tuesday would be the first of its kind in the nation.

It would authorize the California Public Employees' Retirement System to offer individual retirement savings accounts to workers who do not have access to retirement plans through their employers.

De Leon said about 41 percent of California workers fall into that category, many of them in low-wage jobs.

The voluntary contribution program, similar to a 401(k), would include automatic paycheck deductions. It also would be portable, so employees could hang on to their savings even if they switch jobs.

Unlike most 401(k) plans, however, there would be no matching contribution.

Governor Arnold Schwarzenegger and Small Business California, which lobbies on behalf of small businesses, support the legislation.

Other Recent Readings of Interest

• Trends: Employees seek more financial, retirement advice in workplace

Workforce in Colorado graying around the edges

Businesses strive to attract young workers, starting at H.S. level

Apr 08 20:23

By ROGER FILLION

Rocky Mountain News

WHEAT RIDGE, Colo. (AP) -- Mary Buhr loves her job. And the 77-year-old isn't about to retire.

"I told my boss when I have a stroke in this chair, I'm leaving," joked Buhr, who handles accounts receivable for the Wheat Ridge Animal Hospital. "I like to keep my mind sharp. And this is a way to do that."

Mary Buhr underscores the fact that Colorado's work force is graying.

A report from the U.S. Census Bureau shows that 61 of Colorado's 64 counties recorded an increase in the percentage of workers who were 55 and older from 2001 to 2004.

Statewide, 13.2 percent of the work force was 55 and older as of 2004, the report showed.

The retail trade, utility and health care industries were among those with the largest percentages of older workers.

"It's in line with an awful lot of trends you see across the nation in terms of the types of jobs older people have," said Cynthia Tauber, a demographer who is one of the two authors of the census study.

Experts said the graying of the work force reflects a variety of factors, ranging from longer life spans and older workers who have good-paying jobs and who like their work to those who must work to make ends meet.

Experts also cite the millions of baby boomers born between 1946 and 1964 who make up a significant portion of the work force.

Tauber in particular singled out those aged 55 to 64, who made up 10.3 percent of the state's work force in 2004. The expected retirement of those people is likely to leave some industries scrambling to find replacements.

"They're the ones everybody is sweating bullets over," said Tauber.

The utility industry is a case in point. In nonmetropolitan areas of the state, the utility industry had the highest percentage of workers aged 55 and older, at 19.9 percent in 2004. In metro areas it ranked No. 2. with 18.6 percent.

Xcel Energy spokeswoman Ethnie Groves said over the next five years about 1,200 members of the utility's eight-state work force will be eligible to retire.

"And we expect that figure to increase as the years go by," she said. The company employs nearly 11,000.

Those who will be eligible for retirement represent a variety of jobs, including management, office workers, plant operators, engineers and maintenance and construction workers.

Groves said Xcel has been holding job fairs at high schools to attract younger workers as well as sponsoring internships. About 30 students are expected to "shadow" Xcel staffers this summer in the metro area.

At the animal hospital, Buhr said she likes working because it keeps her in touch with a variety of age groups.

"I like to be around people of other ages, not just my age group," said Buhr, adding she likes to come home after work and reflect on her job.

"At the end of the day you have good things to think about. And you know you contributed something."

------

On the Net:

Census Report: http://www.census.gov/prod/2008pubs/ledow04co.pdf

Other Recent Readings of Interest

• Trends: Employees seek more financial, retirement advice in workplace

• CO groups consider challenging anti-affirmative action initiative

• Good pay, steady work, but few takers among young for WA trade jobs

Previous Edition's Headlines

• Read All

Also of Interest

• Main News Headlines by the AP from IMDiversity.com's Multicultural Villages
• Your Weekly Horoscope

[Back to Top]

[Back to IMDiversity Career Center Home]

[Add IMDiversity Career Center to your IE Favorites]