It’s never a bad thing to have a job. But an analysis of data for Rhode Island and the nation shows that which job you have may matter more than it used to.
The Economic Policy Institute in Washington, D.C., released a report recently that showed that across the nation since 1979, high-wage workers are being paid 47 percent more, while middle-wage workers are earning 17 percent higher wages and low-wage workers have gained 9 percent, all adjusted for inflation. (High-wage workers for this discussion earn more than $31 per hour, while the mid range is between $19 per hour and $31 per hour; low-wage workers earn less than $19 per hour.)
The lesson here? As Bryant University economist Edinaldo Tebaldi says in this week’s cover story, “Is R.I.’s middle class shrinking?” “If you don’t have the [high-level] skills and education, you’re going to be left behind.”
The deep dive that the story gives on Rhode Island’s economy reveals that job growth in the state may leave its workforce in a vulnerable position on this issue.
For example, of the 20 occupations expected to add the most jobs from 2016 to 2026, only seven of them pay more than $31 per hour, and they represent roughly one-fifth of that group. In fact, nearly two-thirds of the top 20 group of jobs that the state expects to create in that 10-year window have a weighted average salary of $12.05 (which when translated to a yearly salary totals about $25,000, hardly the kind of salary that allows for wealth creation).
The state has for years talked about needing to change the mix of jobs being created here as a way to make Rhode Island not just wealthier but also more resistant to economic downturns. Clearly, there is still a lot of work to be done.