California鈥檚 $16-an-hour minimum wage may be much higher than a 鈥減overty wage鈥� by federal standards, but high housing costs still make it difficult for low wage workers to live and make ends meet in the state, according to a new report by the state鈥檚 Legislative Analyst鈥檚 Office.
, paints a picture of who low wage workers are and whether the state鈥檚 minimum wage is sufficient to address poverty and inequality.
Many workers move on from low wage work to higher paying jobs as they transition from their 20s to their 30s, but that mobility slows significantly when workers enter their early 30s, according to the report.
鈥淎s a result, half of low-wage workers are over 35 and one-quarter are 50 or older,鈥� the report states. 鈥淭he state鈥檚 economic policies should reflect the fact that many workers hold relatively low-wage jobs through middle age and beyond.鈥�
The majority of low wage workers 鈥� defined as those who earn an hourly wage of $17.50 or less 鈥� are . Three-fourths of them are part of the state鈥檚 In-Home Supportive Services program, which provides care aides to low income individuals.
Fast food workers make up the second largest low wage occupation, but that likely won鈥檛 be the case once that industry鈥檚 kicks in next month. Other low wage jobs include cashiers, retail salespeople, waiters, farmworkers and packagers.
Nearly 6 in 10 low wage workers are Latino, and about half of those are immigrants. Most low wage workers live with at least one other worker and have no young children.
鈥淲e suspect that low-wage workers鈥� high likelihood of living in three-earner (or more) households might be due largely to California鈥檚 high housing costs,鈥� the legislative analyst鈥檚 office said.
The office also analyzed housing affordability for minimum wage earners of varying household sizes and in various regions and found that California鈥檚 major metropolitan areas and much of its Central Coast are unaffordable for minimum wage workers, regardless of whether they are single-income households, double-low-income households or if they have children.
For minimum wage workers with a more 鈥渇avorable鈥� ratio of income to expenses 鈥� for example those without children and those with two earners in a household 鈥� housing in some rural and mid-size metro areas may be affordable.
But there are eight coastal counties in the state where even two minimum wage workers in a household with one child would face housing costs exceeding half their gross income, according to the report.
For minimum wage earners who are single parents and have at least one child, housing is unaffordable in all but three California counties, Modoc, Trinity and Colusa, according to the report. In all counties except Modoc, a single parent of three who earns minimum wage can expect housing costs that exceed half their gross income.
鈥淗alf of low-wage workers are over 35 and one-quarter are 50 or older.鈥�REPORT BY THE LEGISLATIVE ANALYST鈥橲 OFFICE
It鈥檚 even more challenging to afford housing in counties that don鈥檛 have local minimum wages.
The report analyzed wage differences across California regions. Average wages in Imperial County, Monterey County and most of the San Joaquin Valley are 20% lower than the state average. In the Bay Area, wages are 20% higher, and in some counties, 50% higher than the state average.
Many of the high wage regions don鈥檛 have local minimum wages, which impacts low wage workers鈥� ability to afford living there.
In five of the state鈥檚 most expensive counties 鈥� Marin, Monterey, Orange, Santa Barbara and Santa Cruz 鈥� only one city, Novato, has a local minimum wage higher than the state鈥檚.
鈥淕oing forward, the Legislature may wish to consider taking a more active role 鈥� perhaps by setting different minimum wages in different regions or by helping local governments coordinate their minimum wage policies,鈥� the legislative analyst鈥檚 office said.
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