The Indiana Institute for Working Families conducts research and promotes public policies to help Hoosier families achieve and maintain

economic self-sufficiency.

Raising the Wage and theStatus of Working Families

in IndianaJessica Fraser | Program Manager, IIWF

What is Economic Self-Sufficiency?

• Self-Sufficiency is the ability of individuals to care for their families without government support.

• Generally, 200% of FPG is considered self-sufficiency

• Our Self-Sufficiency Standard measures how much a family of a certain composition in a given geographic location needs to meet their basic needs. STAY TUNED IN JANUARY FOR NEWLY UPDATED DATA!!!!

• Calculated for 70 family types in each of Indiana’s 92 counties.

• Interactive Tool: The Self-Sufficiency Calculatorwww.indianaselfsufficiencystandard.org/

Self Sufficiency Standard Vs. Federal Poverty Guidelines (FPL)

Self-Sufficiency Standard• Cost of basic needs based

on local costs• County specific• Assumes all adults are

working full-time• Adjusts by family size and

composition• Includes taxes and tax

credits

Federal Poverty Guideline• Based solely on food costs

• Assuming food represents 1/3rd of a families budget

• Does not take into account geographic location

• Assumes one parent stays at home and the other is working

• Taxes not included

About the Report• Measuring the economic health of Hoosier families is a

central function of the Institute’s mission.

• Analyzes the general state of Indiana’s economy as it relates to working families by examining data on poverty, labor force and wages, followed by working-family friendly policy options.

• Online and interactive data.

• Guides our research and subsequent policy recommendations.

Chapter 1• 2013 saw a record-breaking 1,015,127 Hoosiers in

poverty. • Since 2000, poverty increased nationally by ~30% while

Indiana saw a 57% increase. Among neighbors, only Michigan saw a larger increase. Our increase was near double Illinois’s increase.

• Since 2007, poverty increased by more than 29% in Indiana – more than all neighbors and more than the national average.

• 2014 finds us back at just over 975,000 with a statistically significant decrease in poverty and significant increase in median household income. • Indiana still has the highest rate low-income individuals

than all of our neighboring states, except Kentucky.

[ ]Poverty (Still) on

the Rise

Growth in Poverty, 2000 - 2013

Growth in Child Poverty, 2007 - 2013

2007 2008 2009 2010 2011 2012 201395

100

105

110

115

120

125

130

135

22.2%

U.S. (22.2) Illinois (20.7) Indiana (22.2) Kentucky (25.3)Michigan (23.8) Ohio (22.7)

Source: Economic Policy Institute

Growth of Low-Income Hoosiers, 2007 - 2013

2007 2008 2009 2010 2011 2012 201395

100

105

110

115

120

125

U.S. (34.8) Illinois (31.9) Indiana (35.7) Kentucky (39.1)Michigan (35.6) Ohio (34.4)

35.7%

Source: American Community Survey

Indiana’s Social Safety-Net’s NON- Response

2008 2009 2010 2011 2012 2013 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000 926,694

1,015,127

SNAP TANF Poverty 24,276 Hoosiers on TANF in 2013 represents just 2% of Hoosiers in poverty

Source: Author analysis of TANF (U.S. Health and Human Services, Office of Family Assistance, Caseload Data), SNAP (USDA, SNAP Research and Analysis Division, Food and Nutrition Service) and Poverty (American Community Survey, 1 Year Averages) data. All 2013 annual averages calculated with data from January through September.

Chapter 2

• A closer examination of the data reveals that several large pockets of weakness in the labor market persist.

• Working families trying to make up ground from the last decade-and-a-half of weak income growth are further hampered by the reality that today’s jobs are not what they used to be.

Labor Market & 21st Century Jobs Swap[ ]

Indiana's Jobs Deficit May 2015

Jan-00

Aug-00

Mar-01

Oct-01

May-02

Dec-02Jul-0

3

Feb-04

Sep-04

Apr-05

Nov-05Jun-06

Jan-07

Aug-07

Mar-08

Oct-08

May-09

Dec-09Jul-1

0

Feb-11

Sep-11

Apr-12

Nov-12Jun-13

Jan-14

Aug-14

Mar-15

0

500

1000

1500

2000

2500

3000

3500

Jobs needed to keep up with population growth Jobs lost since December 2007

Employment level since 2000

Peak: 2,993,000 jobs

Trough: 245,400 less jobs

Source: Economic Policy Institute

Labor Force Participation December 2007 – May 2015

56.0%

58.0%

60.0%

62.0%

64.0%

66.0%

68.0%

70.0%

U.S. Illinois Indiana Kentucky Michigan Ohio

Source: Economic Policy Institute

21st Century Job Swap

# During Growth (2001-2007)

# During Recession (2007-2010)

# During Recovery (2010-2013)

-100000 -80000 -60000 -40000 -20000 0 20000 40000 60000 80000

40150

-35,800

50526

-10,572

-72,992

49,623

High Wage Jobs More than $26/hour Mid Wage Jobs $15 - $26/hour $31,200 - $54,080/yearLow Wage Jobs Less than $15/hour $31,200/year

Source: Author analysis of Current Employment Statistics (CES) survey

Public Sector JobsShedding of Local Government Jobs During Recovery

Source: Author analysis of Current Employment Statistics (CES) survey

# During Growth (2001-2007)

# During Recession (2007-2010)

# During Recovery (2010-2013)

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000 10,576

(580)

(4,898)

8,413

(2,043) (2,733)

Local Government Educational services Non Education Local Government

Chapter 3

Food Services and Drinking Places 227,389 $6.53

Administrative and Support Services 166,971 $12.95

Transportation and Equipment Manufacturing 130,202 $26.63

Top 3 Industries by Total Jobs and Average Hourly Wage

Source: Author analysis of Current Employment Statistics (CES) survey

[Working for a (Basic) Living]

Annualized Value of 2014 & 1968 Minimum Wage (in 2014 Dollars)

Source: U.S. Department of Health and Human Services, 2014 Poverty Guidelines, UC Berkeley Labor Center, EPI CPS analysis

Current M

inimum W

age (

$7.25)

1968 Minim

um Wage

($10.96)

Minimum W

age to

Producti

vity ($

19.76)

20th Percentile, H

ourly ($

9.91)

50th Percentile, H

ourly ($

15.84)

Federal P

overty Guidelin

es$0

$10,000

$20,000

$30,000

$40,000

$50,000

$15,080

$22,797

$41,101

$20,613

$32,947

$15,730

Self-Sufficiency – Hourly WageIn no county does the federal minimum wage of $7.25 per hour support economic self-sufficiency for a single adult

Indiana’s median hourly self-sufficiency wage for 1 adult = $9.26

Source: IIWF, 15 Reasons to Raise the Minimum Wage: http://goo.gl/I0hBZc

Income of Most Affluent Working Hoosier Families Compared to Least Affluent, 2005 - 2013

2005 2006 2007 2008 2009 2010 2011 2012 2013$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$92,587

$108,774

Bottom Quintile Top Quintile

$30,438$30,450

Source: Working Poor Families Project

Median Household Income, 2001- 2013

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201375

80

85

90

95

100

105

Illinois Indiana Kentucky Michigan Ohio

Source: Economic Policy Institute

$47,529

$48,273

$43,339

Policy decisions are keyPublic policy decisions can help to restore prosperity by: • Repurposing a state-designed social safety net.

• Reverse deteriorating job quality, stagnating wages and job inconsistency.

• Construct tax policy based on the principle of fairness.

Chapter 3 Policy Options•Raise the Minimum Wage

•Raise the Tipped Minimum Wage

•Provide tax relief to low- to middle-income Hoosiers with a ‘Working Families Tax Cut’ package (See next chapter)

Contact InfoWebsite: www.incap.org/iiwf

Twitter: https://twitter.com/INInstitute

Facebook: www.facebook.com/IN.Institute

Blog: www.iiwf.blogspot.com

Report Link: http://www.incap.org/iiwf/2015status.html

Jessica Fraserjfraser@incap.org(317) 636-4232@JessicaDFraser