Unemployment and Underemployment

Weekly I hear people in the neighborhood talking about employment. Most of them are seeking a job, but I also know of several individuals who are working multiple jobs because one job just doesn’t pay the bills. Unemployment and underemployment (having a job that is insufficient to meet basic necessities of life) are chronic issues in our neighborhood.

The 1st problem is a lack of jobs in our area. There are not enough available jobs for all of the individuals seeking employment. There is an urgent need for new businesses and industries to come into our area. Thankfully, we are beginning to see signs that growth is coming (a new Toyota parts facility which they say will eventually be converted to full scale automobile production; a new inter-modal and warehouse facility; and several new restaurants.) While many individuals in the neighborhood are not qualified for jobs that require a certain level of education and experience—the simple fact is there will be a trickle down effect. As more businesses and industries open service sector jobs should also increase. This is where many of the individuals in our neighborhood will find employment.

The 2nd problem is with the jobs that are available. In many cases these are the lower paying type jobs with a high turnover rate—fast food service, hotel cleaning, etc. These jobs are providing work and income, but seem to have a detrimental impact. When an individual in our neighborhood finds employment (in one of these type jobs) their government assistance is drastically reduced -- to the point that the individual is receiving less money and benefits than if they had not accepted the position. They are “punished” for finding work. And with the way welfare is now structured, they are also punished for not finding work—again through the loss of benefits.

An answer to the underemployment issue is addressing the minimum wage. The federal minimum wage has been frozen since 1997! (See Larry James’ blog post Minimum Wage More than Frozen in Place--Part One) Thankfully several states are not waiting on the federal government to act before they take action. This includes Arkansas. Arkansas recently passed legislation increasing the minimum to over $6.00 per hour. However, an effort to amend the state constitution through a vote of the people to tie the minimum wage to inflation based on the Consumer Price Index was defeated. This is exactly the step that the state of Florida has taken to address the issue there. (For the results of what has happened in Florida since that law passed see Larry James’ blog post Minimum Wage More than Frozen in Place--Part Two.)

However, more must be done. As we all go through the remaining political eletion season, I want to encourage you to support canidates who support the poor. That includes a possition for an increase in the minimum wage.