Low-wage industries continue to grow in Wisconsin, but data from the Economic Policy Institute in Washington, D.C., shows these low-wage industries are paying almost 20 percent less to employees than high-wage industries are.
According to the Center on Wisconsin Strategy, industries paying employees $38,553 per year are losing jobs, while industries paying $31,343 per year have increasing employment. The more than $7,000 difference in wages marks a nearly 20 percent drop in high-paying jobs for the state.
COWS is a University of Wisconsin-based organization working to improve living standards and economic performance both nationally and statewide. One of the organization’s current projects is Wisconsin Job Watch, concurrent with Gov. Jim Doyle’s Grow Wisconsin plan.
One of the primary focuses of Wisconsin Job Watch is the increase in minimum wage, especially since new numbers from the EPI show the state of Wisconsin having 23,800 fewer jobs as of December 2003 than in November 2001, which was the so-called end of the economic recession.
According to COWS, the loss of high-wage jobs, the increase in low-wage jobs and the high statewide unemployment rates are worrisome because Wisconsin does not appear to be coming out of the recession as quickly as in previous years.
To aid in the statewide job loss, COWS supports the raise in the minimum wage because the possible increase from $5.15 to $7.75 would benefit some 130,000 Wisconsin workers.
Ald. Austin King, District 8, is one of the primary leaders behind the minimum-wage increase in Dane County, where the unemployment rate is 2 percent.
The minimum-wage controversy continues to rage because increases tend to bring in low-paying jobs in the long run. Still, King said the strategy behind the wage increase will focus on partnerships with UW and the city of Madison to help raise living standards.
“We’re looking to bring in more high-paying jobs into Madison. We don’t need more $6-paying jobs; we need high-wage, family-supportive jobs,” King said.
Still, many remain divided on the effects of raising the minimum wage, even if it will benefit low-paid workers.
“I can see how it will help lower-class workers because they will make more money,” UW freshman Kate Shanovich said. “But at the same time, it can negatively affect small businesses.”
The possible job loss to small businesses may in turn affect both students and residents of Madison as storeowners are forced to close.
“Raising minimum wage may seem like a good idea in principle, but what many people overlook is the fact that it will create more job loss,” UW freshman Jake Bakula said.
Despite the controversy of the minimum-wage increase in Madison, King said the growing numbers of lost jobs continues to be a problematic issue for the city and the state.





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