Soaring health care costs top the list of problems that make it hard for Idahoans working in low-wage jobs, according to a study released Tuesday.
The 2007 Northwest Job Gap Report, by the Idaho Community Action Network and the Northwest Federation of Community Organizations, found that living costs have outpaced wage growth between 2002 and 2006.
The fifth annual report surveyed wages in Idaho, Oregon, Washington and Montana. The groups found that a single Idaho adult with two children earning a living wage of $18.82 an hour in 2002 would need to earn $23.44 an hour today to cover the increased costs. A single adult would need $10.93, the report said.
From 2002 to 2006, health-care costs in Idaho jumped by nearly 36 percent, and the overall cost of living was up more than 23 percent, the report said. Average wages increased 7.4 percent.
"The competition for jobs is really tough," said Judy Brown, an economist and director of the Idaho Center on Budget and Tax Policy in Moscow. "There are not nearly enough jobs that pay a sufficient wage for a family or individual to provide them a basic standard of living."
Brown was on an ICAN committee that oversaw the report.
The report, which relied on U.S. Bureau of Labor Statistics from 2006, said that in Idaho, 87 percent of the open jobs pay less than a living wage.
Boise Economist John Church said he doesn't doubt the report's validity. He said low wages continue to be a problem in Idaho and other areas of the country.
"Idaho has made some progress," Church said. "We have moved up the spectrum in terms of income per capita versus what it was 10 to 15 years ago, but nevertheless, it's still a relatively low-cost state in terms of wages."
Church said the state can help by continuing efforts to attract companies that pay higher wages, but he said the rapid increase in living costs — especially health insurance — will make that a challenge.
"The cost of health insurance is taking away the ability of companies to even raise their wages," he said. "What employers are paying for health insurance is robbing from workers what they could be taking home."
Low wages became an issue with this summer's layoff of more than 1,100 Micron Technology workers. Most Micron employees made better wages than the $17.91-an-hour average in the Boise/Nampa area in the state's latest occupational wage survey.
John Panter, a regional labor economist with the Idaho Department of Labor, said replacement jobs with similar pay and benefits are hard to find despite Idaho's low unemployment. Aside from construction, most job growth has been in retail and food service, he said.
The report recommends that state leaders increase the eligibility of children to receive benefits in the Childrens' Health Insurance Program to include families that make 200 percent of the poverty level.
After five years, state leaders are starting to pay attention to the yearly report, Brown said. She cited increased discussions among government leaders about the need to improve education including strengthening the community college system are a positive step to better-paying jobs.
To improve access to education, the state needs to look at a higher minimum wage and more access to needs-based financial aid, she said.
"If we can upgrade skills, we can increase wages over time," she said. "If you compare statistics with other states, we don't have a very well-educated labor force."
Ken Dey: 672-6757
