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October 18, 2011
Wages in Ohio Decline Sharply, Study Shows

Ohio suffered the worst wage decline in the nation over the past decade, according to a recent report from the non-profit research organization Policy Matters Ohio. The State of Working Ohio 2011 shows that the median wage in Ohio dropped by 86 cents between 2000 and 2010. Ohio was one of ten states to see wage declines during that time. In addition, the study shows that employment levels in Ohio during the past decade reached historic lows. “Wages are shrinking, jobs are elusive, [and] long-term joblessness is the highest on record,” said Amy Hanauer, executive director of Policy Matters and author of the report.

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The study reveals a long-term trend of declining wages in Ohio despite increased education levels in the workforce. Adjusted for inflation, men’s median wages within the state have fallen by $2.30 an hour since 1979. Women’s wages have grown by only $2.00 an hour in that time, with no growth in the past decade. Hourly median income for black workers in Ohio fell by more than $2.50 since 1979, reaching $12.11 in 2010.

In addition to falling wages, the study reveals record declines in employment in recent years. Labor force participation in Ohio, which includes people working or looking for work, fell for the fourth straight year to 65.2% in 2010, the lowest level since the late 1980s. Men’s labor force participation levels fell for the fourth year in a row to 70.5%, while male employment levels fell to 62.4%, both historic lows. Women’s labor force participation fell to 60.3%, the lowest since 1999, with current employment among women at 55.2%. Persistent unemployment is the worst in Ohio’s recorded history, with 42.4% of the state’s unemployed out of work for more than 6 months during 2010, the highest level in more than 60 years, and more than 29% out of work for more than a year.

“We are wealthy enough to have good jobs at decent wages for every Ohio worker,” Hanauer concluded. “It’s time for a laser-like focus on ensuring that all Ohioans can contribute to and benefit from our economy.” To read the full report, visit www.policymattersohio.org.

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