Minimum-wage jobs nearly double in 5 years

Percentage runs far ahead of 2006 figure. Some see low-paying jobs as concern; others call them a lifeline.

SPRINGFIELD — The percentage of people working minimum wage jobs has nearly doubled statewide and nationally in the past five years.

According to the Bureau of Labor Statistics, 4.7 percent of Ohio workers made $7.25 or less in 2011.

That’s down from 5.2 percent in 2010, but remains well above the 2.7 percent of Ohio workers with minimum wage jobs in 2006.

Some of the increase can be attributed to hikes in the minimum wage in recent years. Ohioans who make the state minimum of $7.70 an hour aren’t included in this data.

Some leaders are concerned about the increase of lowering-paying jobs while some employers see them as a lifeline for desperate workers hit hard by the recession.

The growth of lower-paying jobs, not just minimum wage, is “ a serious problem in the industrial Midwest,” Mayor Warren Copeland said.

While the Midwest is recovering faster because of growth in industrial jobs, he said, the increase in lower-paying ones is a concern.

“We replaced most numbers in jobs, but the jobs that replaced them pay much less,” Copeland said. “We’re working hard to find jobs and attract jobs to town that pay better.”

Some employers such as Andre Moore, regional manager of Popeyes Louisiana Kitchen, say the minimum wage might not seem like a lot of money, but in this economy, it’s what people need to have financial security.

“Due to the economy, we don’t have any problems filling these positions,” Moore said.

The restaurant opened at 2424 S. Limestone St. in December and has hired 40 full- and part-time workers at Ohio’s minimum wage.

Moore said more jobs could come, depending on business this summer.

While the company starts at minimum wage, Moore said, it gives raises and promotions quickly. Since opening, he’s promoted three people.

Karrie Hosler has been a cashier at Popeyes since December.

“Any job is hard to find, so you’re taking any job you can get,” said Hosler, who said she lucked out at Popeyes.

She’s already seen wage increases, and said she loves the job and the people she works with.

“Something is better than nothing,” she said.

Local job seeker Kanisa Reynolds is still looking for that something. She attended the May 18 regional job fair and is still hoping to get calls back from one of the 38 employers looking for workers that day.

“As of right now I would take anything basically because it’s hard to get a job,” she said.

Reynolds has been looking for a job for almost a year.

“It’s not what I want but if it comes to it, then I would take a minimum-wage job,” she said.

The wage range in Clark County varies depending on the industry, said Lehan Peters, deputy director of Job and Family Services of Clark County and WorkPlus One-Stop Center. But Clark County considers a “sustainable living wage” to be $10.80 an hour, Peters said.

Retail jobs earn about $8 to $9 an hour, she said, while manufacturing line workers make $8.50 to $14 an hour. Customer service jobs make $8.50 to $13 an hour.

“Trade jobs such as welding ... electricians, maintenance and repair hourly wages are averaging $3 to $5 less per hour compared to the same jobs prior to the recession,” Peters said.

As more people clamber for the available minimum-wage jobs, it allows companies to pay workers less.

Labor advocates find that people making less than $9 an hour can see wages at manufacturing plants such as Navistar International Inc. in Springfield as a major improvement, said Jason Barlow, the president of United Auto Workers Local 402.

“We’re always advocating to improve wage structures for members and outside in the public arena,” Barlow said.

He said so far this year, Navistar has hired more than 100 people.

“And a lot of those individuals were making $7.50 or $8 (an hour) on their last jobs,” he added. “They’re getting an increase ... then they can provide a lot more for their money and not just save it, but spend it in the community.”

And because more people are desperate for jobs, Barlow said, Navistar can pay lower wages. But a lower pay structure was instrumental in reviving the Springfield plant.

“That’s how we could get more work in Springfield,” Barlow said. “By having a lower wage starting at $14.75 an hour instead of the typical $25.”

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