A new report showed income inequality in Wisconsin is declining as lower-wage workers are seeing faster wage growth but Black, Latino and women workers still lag behind.

A study by the High Road Strategy Center at the University of Wisconsin-Madison found the state's job market hit record levels in the second quarter and the inflation-adjusted median hourly wage has increased by 97 cents.

Laura Dresser, associate director of the High Road Strategy Center at the University of Wisconsin Madison and the report's co-author, said the increase in the median wage is just making up for the period inflation ran ahead of earnings in 2022.

"In these last five years, lower-wage workers have seen their wages go up by 8%," Dresser reported. "In terms of purchasing power, real value, and high-wage workers have only had wages go up about 1%."

The State of Working Wisconsin 2024 report noted the number of jobs in Wisconsin has topped 3 million and unemployment remained steady at 3%. The study also found the rate of unionized workers in Wisconsin dropped by one-third between 2011 and 2023, the steepest decline in union membership across the Midwest region.

Despite the increase in wages, the report said significant wage gaps remain between white men and workers who are Black, Latino or female. Dresser pointed out Latinos earn about 33% less, Black workers make 25% less, and white women's pay lags 16% behind in the workplace.

"When you focus on improving the quality of jobs, especially at the bottom of the labor market, you also are looking to close racial and gender gaps in wages," Dresser explained. "Because it is Black and brown and women workers who are dominant in lower-wage jobs."

The report made some recommendations for Wisconsin lawmakers. It suggested raising the minimum wage from $7.25 to $15 an hour to help close the pay gap, rolling back the state's so-called "right to work" laws to restore union rights and increasing investments in child care and education to provide relief for families and employers.


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For Pennsylvanians on the hunt for employment opportunities, the Keystone State still offers a favorable landscape.

The state's jobless rate stayed at a record low 3.4% in September, better than the national rate of 4.1%.

Claire Kovach, senior research analyst at the Keystone Research Center, said Pennsylvania is drawing significant attention as a swing state. The center analyzed key economic indicators, including unemployment, jobs and wages across all the state's counties. The state's unemployment rate has been historically low for more than two years.

"In every one of Pennsylvania's 67 counties, the unemployment rate is lower now than it was right before the pandemic, when the economy was strongest under President Trump's first term," Kovach pointed out. "It's lower everywhere, but there's also a clear geographic pattern. Unemployment is a lot lower than before the pandemic in western and rural Pennsylvania."

Kovach noted the center has an interactive map showing the drop in the unemployment rate by county. She added the research revealed two-thirds of counties have seen job growth since just before the pandemic, with faster growth in the eastern half of the state, which also has faster population growth.

Kovach emphasized the tight labor market indicates a strong overall economy in Pennsylvania and is especially good for workers.

"Low unemployment benefits workers, both individually and collectively, because it's giving them more bargaining power with their employers, more ability to get higher pay, better benefits and working conditions," Kovach explained. "With respect to workers' bargaining power, this is the best economy for Pennsylvania workers in half a century."

Kovach said despite Pennsylvania workers seeing wage growth above inflation over the last decade, Pennsylvania's minimum wage lags behind all neighboring states. She argued the gap particularly harms low-income workers, especially those in the bottom 30%. Research in the report further highlighted the effects of a stagnant minimum wage on workers.

"We found that Pennsylvania workers, the low earners, make about $1.71 less per hour than their regional counterparts in New York, Maryland and New Jersey," Kovach stressed. "If you look at that as full-time, year-round work, that's $3,500 a year less that our low-wage workers are getting paid in Pennsylvania."

The state's minimum wage remains at the federal level of $7.25 per hour.

A new report from the American Federation of Labor showed the pay gap between CEOs and their workers continues to widen and Iowa has among the biggest disparities in the nation.

The report found companies' production costs were down 3% in 2023 but consumer prices were up 3%.

Charlie Wishman, president of the Iowa American Federation of Labor, said company CEO profits are up 6%, even as more families struggle to keep up with a rising cost of living. Wishman pointed out the gap between the CEO and an average worker at a Casey's General Store in Iowa is among the highest in the nation.

"The average CEO pay to the median worker pay, the difference is 623 to 1, meaning the CEO was going to make 623 times more than the median worker wage at Casey's," Wishman outlined.

Wishman noted the Casey's CEO-to-employee wage gap has grown from about 40 to 1 in the 1980s. Casey's said it reviews its salary and bonus structure yearly to be sure they are competitive. Nationwide, the report said it would take more than five career lifetimes for a worker to earn what the average CEO is paid in one year.

The report listed several examples of huge corporate profit increases, including a 66% hike in the former Starbucks CEO's pay. Securities and Exchange Commission documents showed Laxman Narasimhan's compensation jumped from $8.8 million in 2022 to $14.6 million in 2023.

Wishman argued for the average Iowan, such numbers are hard to stomach.

"It's not just that there's so-called 'inflation' going on, that consumers are making 'too much money.'" Wishman asserted. "We actually think it's an excuse that's being used by a lot of corporations to charge consumers more."

In the Starbucks example, the report showed the cost of a medium coffee at the chain has risen by 20% in some locations and the company has doubled the number of points required to qualify for rewards despite its overall production costs going down.

Projections of South Dakota's job growth could lead to more degrees from technical colleges, which are seeing increased enrollment.

Occupational employment levels in South Dakota are expected to grow 7.7% through 2032, according to new data from the state, more than twice the projected national rate of 2.8%. The two occupations with the highest expected growth, at over 56% each, are nurse practitioners and wind-turbine service technicians.

Melodee Lane, director of the Labor Market Information Center for the South Dakota Department of Labor and Regulation, said the projections "reflect historical growth patterns."

"The big driving force between the occupational projections, the starting point is to project employment at an industry level," Lane explained. "Industry growth plays a large role."

Utilities-related jobs -- supported by a rise in electric vehicles, data centers and shifts toward renewable energy -- are expected to grow nationally at 0.6%. Several South Dakota technical colleges offer wind-service technician programs. Enrollment in the state's four technical colleges is at a five-year high, with nearly 75,000 students.

Other occupations with big projected growth in South Dakota are data scientists, information security analysts, physician assistants and physical therapist assistants. Lane pointed out it tracks with other cultural and demographic changes in the state.

"Such factors as consumer demand, growth of e-commerce, population growth, especially in the state's more urban areas," Lane outlined. "The needs of an aging population is a big one."

Nationally, an aging population and a higher prevalence of chronic health conditions is expected to drive the highest industry growth in health care and social assistance.


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