Workers and Policy Publications

For the State of Working Wisconsin 2020, COWS created a digital presence to tell the story of workers in the state during COVID-19. This exciting new report shines a spotlight on the brutal Black-white disparities that define this state and provides worker profiles to crystallize the human costs of this crisis. For more than two decades, COWS’ State of Working Wisconsin has presented the workers’ perspective on the economy in the state: what’s going on with work and jobs, who is winning in this economy, and who is being left out; where is disparity growing; what’s happening to the economic chasm separating Black and white workers in the state. The SOWW 2020 website can be seen here.

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Each year on Labor Day, COWS draws a picture of how working people in Wisconsin are faring. The long report, The State of Working Wisconsin, is released biannually on even-numbered years and looks at the economy comprehensively from a working-family perspective. In odd-numbered years, like 2019, we provide a more abbreviated and focused report, called The State of Working Wisconsin: Facts & Figures.

On some of the most well-known economic indicators, there is good news for Wisconsin workers. The unemployment rate in the state has been consistently low. The economy is steadily adding jobs. These are important measures for working people’s lives. When jobs are more available not only is it easier to secure a job, it is also easier to get the hours of work you want, to be able to ask for time-off you need, and to make ends meet. This Labor Day, with the memory of the Great Recession of 2007 now fading from memory, workers across Wisconsin have this good news to celebrate.

Even so, many working families in the state feel stressed and stretched. In this report, then, we provide information on few key long-term trends that are contributing to the stress even in the context of low unemployment. Looking across the last forty years, the challenges working people face are clear. Wage growth has been anemic. Income inequality is reaching new highs. Unions, which have been so critical to supporting workers in this state, are in serious decline. Additionally, state policy, which could be helping to close gaps, is actually exacerbating these trends. From tax changes that reward our highest income families to rejection of health insurance to cover our families in need, policy continues to pave the low-road for our state.

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In the 20th Century, people from around the world came to Wisconsin and the Midwest, seeking opportunity in the industrial boom. Manufacturing and unions helped create good jobs for many black workers, but discrimination and segregation limited that sharply. When industrial jobs declined, black Midwesterners suffered the most. Over the last 40 years, opportunity and outcomes for black residents in Wisconsin have fallen below national averages. As a result, black Wisconsinites face stubborn barriers and road blocks that many white people don’t even know are there. Racial disparity in Wisconsin is not inevitable, but closing the gap will require a broad focus and multifaceted approach.

‘Wisconsin’s Extreme Racial Disparity’ provides a Wisconsin-focused summary to ‘Race in the Heartland‘, which shows the persistence of racial disparities in the Midwest and what can be done about them.

Wisconsin has the regrettable distinction of ranking among the worst states in the nation for racial inequality. Disparities among black and white residents of our state – spanning poverty, unemployment, educational attainment, and incarceration – have been documented consistently for more than a decade. Although activists and policymakers have increasingly focused on addressing these issues, they remain pressing.

‘Race in the Heartland’ and ‘Wisconsin’s Extreme Racial Disparity’ provide a careful historical context and a broadly informed policy framework that are critical to winning greater racial equity throughout this region.

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Despite job gains, Wisconsin’s job growth is slow relative to the national pace. Wages are still in no way keeping pace with worker productivity. Wisconsin is comparatively weak in more lucrative occupations: professional, scientific, technical, and information. Our manufacturing sector, while growing, is a still significantly smaller than at the beginning of the century. And inequality continues to grow. One in five workers currently holds a poverty-wage job with few benefits. Rural economies are declining. Wisconsin’s black/white disparities still lead the nation.

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In November 2012, fast-food workers in New York went on strike and the Fight for $15 was born. Over the last five years, the movement has lifted wages for more than 17 million workers across the nation by fighting for and winning numerous minimum wage policies (National Employment Law Project 2016). Substantial minimum wage increases are underway in California, New York, Oregon, and more than 30 cities and counties around the country. In states and cities covered by them, these new minimum wages will increase earnings for 25 to 40 percent of workers (Reich, Allegretto, and Montialoux 2017; Reich et al. 2016). After four decades of wage stagnation and rising inequality, the movement has delivered real, much needed, and meaningful progress in a remarkably short period of time.

Fast food has been iconic in the discussions of the minimum wage, from the influential mid-1990s research that found no negative employment impact of wage increases in the industry, to the fast-food workers who have walked out on strike in cities across the country in recent years (Card and Kruger 1995). But of course the reach of these wage increases extends well beyond fast food to underpaid workers in multiple industries. The dynamics of minimum wage increases vary across industries based on each industry’s specific structure.

Nowhere are the distinct dynamics more pronounced and challenging than for those employed in human services industries. This paper focuses on an important subset of these workers: those who provide homecare and early care and education services to the very young, people with disabilities, and those who are frail due to age or illness. We explain the pressing need to raise these workers’ wages and the unique structure of their industries that results in a funding squeeze for wage increases—at the root of this is the fact that most families are unable to afford all of the homecare and child care they need, never mind pay enough to ensure that workers earn a living wage, and public human services are chronically underfunded.

These workers provide a critical (but too often unrecognized) public good; as such, we argue that a significant public investment is a necessary part of the solution, both to deliver minimum wage increases to these workers and to cover the significant unmet need for care. We provide background about the shared and divergent challenges in the homecare and early care and education industries, as well as review emerging policy initiatives to fund wage increases for homecare and early care and education workers and identify principles for public policy going forward.

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In the fourth quarter of 2017, Wisconsin added 12,500 jobs, most of them in October. In contrast to the strong October, in December, Wisconsin actually lost jobs. Still, over the quarter, the state’s job base grew. Growth was driven by private sector gains, with the state adding 15,200 private jobs. The state lost 2,700 public sector jobs across the quarter capping off a very weak year in the public sector. Wisconsin’s ended 2017 with 3,300 fewer public sector jobs than a year ago. Still, as with the quarter, so with the year. Private sector growth meant that the state jobs base grew 1.4 percent: Wisconsin added 40,200 jobs in 2017. The unemployment rate continues to drop slowly across the nation and Wisconsin is not an exception. Unemployment in Wisconsin stands now at 3.0%, significantly below the level of the end of 2016 and at its lowest point since the recession.

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Criminalizing hard working families and falling into irrational fear harms all Wisconsin families and the Wisconsin economy. Immigrants are a core part of the Wisconsin economy and contributing to this state through taxes, education, and self-owned businesses. The state should be pursuing ways to welcome and build the skills of this community.

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After an inconsistent 2016, Wisconsin started off 2017 with a modest job growth across the first quarter. January through March, the state added 12,800 jobs. The growth was concentrated in January and February and offset job losses of 3700 jobs in March. Over the quarter, private sector creation compensated for the loss of almost 7000 jobs in the public sector. Additionally, the unemployment rate continues to edge down nationally and in Wisconsin. Unemployment in Wisconsin stands now at 3.4%, significantly below the level of the end of 2016.

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In Wisconsin, policy makers seem to increasingly assume that work, and work alone, can provide a decent standard of living. However, working families continue to face a slew of challenges – low wages, inadequate benefits, insufficient hours – generated by the very jobs that are supposed to be the answer. This report highlights the disconnect between state policies and the realities of Wisconsin families working in jobs at or near the poverty line.

The landscape of public support systems is changing in the state of Wisconsin, in the direction of making benefits more difficult to access for people who toil in bad jobs or cannot secure employment at all. A sharp turn toward more accessibility by redesigning the work requirements and better understanding the nature of bad jobs is needed.

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