As Black History Month begins, people are looking at how to close New York's racial wage gap.
Between 2010 and 2020, the state's wage gap shrank by only a few thousand dollars. Then came the pandemic. On a national scale, it brought the gap to a new low.
Melissa Charles, a server at the Island Fusion restaurant in New York City, relies mostly on tips from her work to support her and her disabled son. Charles described how disproportionate wages for Black workers affect her.
"I'm not able to afford sometimes child care for my son since it's just me alone with him," Charles explained. "As well as in terms of sometimes affording rent, to pay my bills."
She added it is also challenging to afford household items such as groceries and clothes.
Tipped wage jobs like Charles' have negative effects on women. The labor advocacy organization One Fair Wage found Black women in front-of-house food service jobs earn $2.57 per hour less than men. Overall, 22% of Black women said tips do not cover the difference between minimum and subminimum wage.
In New York, women of color face more of a gap in their pay. A 2023 New York State Department of Labor report showed Black women are paid almost 68 cents for every dollar men earn. Charles noted the city and state of New York can provide child care assistance to help people like her.
"Sometimes, you make enough just to pay rent, so child care assistance would help in that type of situation," Charles pointed out.
Child care is often a challenge on any salary since research finds it costs almost $1,300 per month in New York, or more than $15,000 per year. In the enacted 2024 budget, Gov. Kathy Hochul created the Workforce Retention Grant Program, allocating $500 million in underutilized federal funds as grants for eligible child care programs.
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Minnesota is moving closer to ensure all workers are eligible for the state's minimum wage of $10.85 an hour.
The Legislature has been taking action on a labor policy bill which includes a provision to essentially do away with minimum-wage carveouts. If passed, certain groups of workers, such as those hired by small businesses and employees 18 and younger, would no longer have to settle for the lower wage of $8.85 an hour.
Sen. Jennifer McEwen, DFL-Duluth, defended the changes during a Senate floor debate.
"Our businesses in Minnesota are prepared to have a good quality of life for the people in their businesses," McEwen stated.
Republican senators argued the state is creating a burdensome environment for small businesses. The provision in a larger bill also raises the cap on annual wage adjustments tied to inflation from 2.5% to 5%. The omnibus bill cleared its final legislative hurdle Wednesday and now goes to the governor.
Some GOP senators said they acknowledged higher consumer costs are making life hard for low-wage workers.
Sen. Gene Dornink, R-Brownsdale, worried about the tone being set for small businesses.
"Unfortunately, some of the mandates that we've continued to pass over these last few years have made it so businesses are getting discouraged," Dornink contended.
Democrats countered their approach is not about mandates but rather boosting the dignity of workers propping up the state's economy. As for other provisions within the labor bill, there are new requirements for salary transparency in job postings, as well as child labor protections.
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North Dakota is in the top half of states for average weekly grocery bills and a new national report detailed how consumer debt is bridging the gap for households having a hard time covering food expenses.
Policy experts said grocery price increases have outpaced overall inflation. Findings from the Urban Institute showed in 2023, 60% of adults reported their families used credit cards to buy groceries and 7% were not able to make minimum monthly payments on the charges. Nearly one in five dipped into savings to maintain their food supplies.
Kassandra Martinchek, senior research associate at the Urban Institute, said the report reflects the financial strain some people are feeling.
"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek observed. "Something like losing their job."
For those taking advantage of Buy Now, Pay Later options for groceries, 37% reported missing payments on loans. A separate report earlier this year found North Dakota is just below the national average for grocery expenses. However, it is still 23rd highest in the nation, sitting above neighboring states.
Even if food prices start to come down, Martinchek emphasized missed debt payments during the price hikes could have lasting effects.
"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek explained.
She added it is especially the case for historically disadvantaged households. The report suggested policymakers strengthen social safety nets to help these families as pandemic aid expires. But increasing payments under programs like the Supplemental Nutrition Assistance Program might be hard in a divided Congress. Another recommendation called for bolstering credit counseling and debt management services.
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It's graduation season, and in Minnesota, it's not just high schools and universities sending off waves of students. Organizers say they're seeing a lot of people complete apprenticeship training for careers in the construction trades.
Building Strong Communities is a statewide apprenticeship program that prepares future construction workers over a 12-week period. At its spring graduation at North Hennepin Community College, 105 men and women received their certificates.
Rick Martagon, executive director of Building Strong Communities, said that's up 41% from last year, which coincides with a growth in a more diverse group of apprentices, including older students.
"And a lot of people are making a career change as adults who have been in the workforce for quite a while. And they're interested in doing something else, and they look at the opportunities within the building construction trades and are making that change," he explained.
He thinks there's been a more intentional effort to recruit the next generation of workers in the trades, who might have concerns that the work is harder or not as lucrative as technology jobs. Martagon said starting wages are strong and earned credentials can be used all over the country. National forecasts show an overwhelming need for skilled trade workers with the renewed push for housing construction.
Analysts say the industry needs to move even faster with recruitment, as many construction workers retire. Martagon says the good news is, demand is strong for solid-paying jobs, making their outreach a little easier.
"We're in a good place right now as we see growth in retirements and a good economy, investment in infrastructure," Martagon continued.
Federal programs, like the Bipartisan Infrastructure Law and the Inflation Reduction Act, are spurring projects, including construction related to clean energy. Building Strong Communities is supported by unions around Minnesota and state grants. Leaders say a strong component is that it starts with virtual classes before hands-on training, and participants are given a true sense of what it's like to perform this work - helping them decide whether to continue.
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