DENVER - The number of jobs that don't pay full-time workers enough to get by are on the rise in Colorado, according to a new report. About 600,000 Coloradans earn less than $12 an hour, a wage that would put a family of four just above the federal poverty line.

Chris Stiffler, economist with the Colorado Fiscal Institute, says when workers aren't paid a living wage, taxpayers are left on the hook to cover public assistance programs such as health care and food stamps.

"This basically is a free ride for employers, large employers particularly, who are basically able to export their benefits onto the taxpayer," says Stiffler.

Of the $1.7 billion Colorado spent on Medicaid in 2014, $304 million went to covering low-wage workers or their children. Stiffler says that's money that could have been allocated to schools, child protective services, transportation and other state priorities.

The report also found that most low-wage earners are adults, not teenagers; only 15 percent are under age 20. Stiffler points out that low-paying work, like retail, personal-care aides and food preparation, makes up a growing portion of Colorado's overall economy, up from 23.7 percent in 2001 to 26.2 percent in 2013.

"You particularly see a lot more jobs in the retail sector and the restaurant industry in Colorado," says Stiffler. "Whereas other jobs that typically pay higher wages, like manufacturing jobs and construction jobs, we've seen those number of jobs shrink over the past several decades."

From 2000 to 2013, despite a 20 percent increase in worker productivity, the bottom fifth of Colorado's wage earners saw their pay drop by 8 percent when adjusted for inflation. Stiffler adds, women and people of color are more likely to be employed in low-wage jobs.


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Pennsylvania's wage growth has rebounded from pre-pandemic lows and now exceeds the national average, according to the latest "Pennsylvania Workforce Trends" report.

The data show average hourly earnings for nonsupervisory workers grew almost 4% between 2019 and this year. Pay grew even faster among low-wage workers, at 9.2% in Pennsylvania, but not as much as the U.S. average of more than 13%.

Carrie Amann, executive director of the Pennsylvania Workforce Development Association, said despite the wage increases, Pennsylvanians are well aware the cost of living has also been on the uptick.

"Employers are, in fact, paying their workers more in certain occupations and certain percentiles of workers," Amann reported. "We've seen significant increases -- I think, almost 10% wage increases -- in what we would typically call low-wage workers."

The report showed the national average pay increase for low-wage workers is higher than in Pennsylvania because more states have increased their minimum wage above the federal minimum of $7.25 an hour. Pennsylvania has not done so, despite neighboring states like West Virginia setting their minimum wage at $8.75 an hour, and New York at $15 an hour.

Among the Pennsylvania Local Workforce Development Areas, 15 of 22 saw increased weekly wages from the first quarter of 2019 to the fourth quarter of 2023. Amann emphasized the significance of local wage-growth data. She cited Lancaster as an example, due in part to the cost of living and workforce supply and demand.

"We do see disparities and differences between Lancaster -- who is having an average weekly wage growth of 6.3% over the last 2019 through 2023 -- compared to Philadelphia and others, who are seeing wage declines," Amann noted.

Amann added her organization partners closely with the United Way of Pennsylvania on its advocacy efforts around workers in the category known as "ALICE," which stands for Asset-Limited, Income-Constrained, Employed. She emphasized 28% of working Pennsylvanians struggle to survive.


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Washington home caregivers are negotiating with the state on wages and benefits. The caregivers' union, SEIU 775, is in talks with the Consumer Direct Care Network of Washington through the Consumer Directed Employer Rate Setting Board.

Nelly Prieto, a caregiver and executive board member for SEIU 775, said home care workers are struggling with the cost of living and inflation, which is compounded when they struggle to get 40 hours of work.

"If we don't have that then whatever we're getting paid, it's hard for us to survive on something like that," she explained.

SEIU 775 is looking to ensure wages of at least $25 per hour, continued affordable health coverage even when a caregiver's hours vary month to month, an increase in retirement benefits, and more paid time off and mileage reimbursement. The Consumer Directed Employer Rate Setting Board's next meeting is Monday.

Recruitment and retention of caregivers is among the union's biggest issues.

"If they don't get paid enough, well of course they're going to go ahead and look for something different, and it's always a big turnover," Prieto said.

Prieto added that caregivers are invested in their jobs and ensuring they provide their clients the care they need.

"Just because we love our clients and we want to continue doing this work, it doesn't mean that we don't deserve to have a dignifying living ourselves for our families and for us, to make sure that we take care of ourselves," Prieto added.

Starting next year, Michigan employers will need to pay workers more than $12 an hour, following a landmark ruling from the state Supreme Court.

The 4-to-3 decision reignited Michigan's 2018 ballot initiatives on the minimum wage and paid sick leave.

The wage will be $10 per hour, plus an adjustment for inflation since 2018. The ruling should mean higher pay for more than 800,000 workers in Michigan, including a 48% increase for tipped workers.

Saru Jayaraman, president of the advocacy group One Fair Wage, said her organization has been working for more than a decade to see this change in Michigan.

"By 2028, 1.2 million workers will get a raise," Jayaraman pointed out. "But it also means that Michigan becomes the first state in 40 years, and the first state east of the Mississippi, to end the subminimum wage for tipped workers, which is a direct legacy of slavery."

The head of Michigan's Restaurant and Lodging Association called the court decision "tone-deaf" In a statement, Justin Winslow said 40% of full-service restaurants in Michigan are already unprofitable and predicted the decision could force more of them to close permanently, eliminating up to 60,000 jobs.

However, other states are following suit. Jayaraman pointed out states with pending legislation to raise their minimum wages include Colorado, Illinois, Maryland, Massachusetts and Ohio.

"In total, we actually have this moving right now in a dozen states around the country," Jayaraman observed. "But Michigan is the first, the first to go."

The ruling also paves the way for extensive changes in worker compensation and benefits in Michigan. Those will not take effect until late February next year. In the meantime, Jayaraman added her group is also advocating for an increase in the federal minimum wage, which has been $7.25 an hour since 2009.


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