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HomeMy WebLinkAboutMemo - Read Before Packet - 9/6/2022 - Memorandum From Ginny Sawyer Re: Minimum Wage: Additional Information – September 6 Special Work Session Agenda Item #2 City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM Date: September 6, 2022 To: Mayor and City Council From: Ginny Sawyer, Policy and Project Manager Thru: Kelly DiMartino, City Manager Tyler Marr, Interim Deputy City Manager RE: Minimum Wage: Additional Information September 6 Special Work Session Agenda Item #2 Bottom Line: Staff continues to gather information in an effort to help Council make an informed decision on minimum wage recognizing the challenge to identify a wage number based on data. Colorado State Minimum Wage History A state minimum wage was implemented in 2007, adjusting the wage from the federal $5.15 to $6.85. In 2016, the state wage was $8.31 and voters approved a measure to move to $12.00 by 2020 at which point the wage would adjust based on Consumer Price Index (CPI). Year Wage Increase 2016 $8.31 .08 2017 $9.30 .99 2018 $10.20 .90 2019 $11.10 .90 2020 $12.00 .90 2021 $12.32 .32 2022 $12.56 .24 2023 $13.65-$13.70 $1.09-$1.14 Data indicates that wages have kept up with costs other than housing. (See slide 23 of presentation) Living wage data is from the MIT Calculator (https://livingwage.mit.edu/states/08/locations ) (Slide 30.) This data and the information provided in the Minimum wage Report are reported at County or Metropolitan Statistical Areas (MSAs). Staff has been unable to drill down to Fort Collins only metrics. The following tables are created using data from the LMI Gateway page which is provided by the Colorado Department of Labor and Employment (additional attachment from LMI included.)(https://www.colmigateway.com/vosnet/lmi/default.aspx?plang=E Denver Metro (MSA) Year Employees Entry Level Wage Minimum Wage 2018 1,478,110 $12.55 $10.20 2019 1,513,360 $13.28 $11.10 2020 1,457,420 $14.35 $12.85 2021 1,464,790 $15.46 $14.77 FTC/LV (MSA) Year Employees Entry Level Wage Minimum Wage 2018 160,420 $11.81 $10.20 2019 164,700 $12.43 $11.10 2020 156,030 $13.59 $12.00 2021 159,790 $14.80 $12.32 Additional Information: Denver, CO n initiative to pay City and County of Denver employees and contractors $15.00/hour. At the time there was also a national movement (Fight for $15). Out of this, the efforts expanded to include all employees. 23 employees in the Labor Division. Seattle, WA Seattle passed a minimum wage law in 2014. The minimum wage was $9.47 and the ordinance moved the wage to $15.00 by 2021 (an average of .79/year). These efforts were also taken during the Fight for $15 movement. The Seattle wage varies based on employer size and benefits offered. (see attachment) The Seattle Labor Standards office was established in 2015. Flagstaff, AZ In 2016, Flagstaff voters approved an ordinance to raise minimum wage to $15/hr by 2021. They are also phasing out tipped wages by 2026. Below is their implementation schedule. 2017 $10.50 (after July 1) 2018 $11.00 2019 $12.00 2020 $13.00 2021 $15.00 or $2.00 above state minimum wage 2022 $15.50 or $2.00 above state minimum wage 2023 CPI adjustment 2024 CPI adjustment PRESS RELEASE Colorado Department of Labor and Employment • 633 17th Street, Suite 1200 • Denver, CO 80202 • (303) 318-8004 • Fax: (303) 318-8070 For Immediate Release Date: April 6, 2022 Contact: Office of Government, Policy and Public Relations Email: cdle_pr@state.co.us Web: www.colmigateway.com Colorado Occupational Employment and Wages — 2021 The Occupational Employment and Wage Statistics (OEWS) program is a Federal-State cooperative program that provides estimates of employment and wages for over 800 non-military detailed occupations in 22 major occupational groups. Every year, the Colorado Department of Labor and Employment, in partnership with the Bureau of Labor Statistics, collects and publishes occupation and wage data for the State of Colorado and for ten substate regions: seven Metropolitan Statistical Areas (MSAs) and three Balance of State (BOS) Areas. For information regarding the effects of the COVID-19 pandemic on OEWS data, see www.bls.gov/covid19/effects-of-covid-19- pandemic-on-occupational-employment-and-wage-statistics.htm. Statewide Highlights Workers in the State of Colorado had an average (mean) hourly wage of $30.24 in 2021, about 8 percent above the US average of $28.01, according to the Colorado Department of Labor and Employment and the US Bureau of Labor Statistics. The statewide median hourly wage 1 for all covered employment 2 was $23.05 compared to the US median of $22.00. Statewide Occupational Employment and Wages The occupational groups with the most workers were office and administrative support (313,280 workers), sales and related (292,670), and food preparation and serving related occupations (223,030). These three groups accounted for just under 32 percent of total covered employment. Management occupations had the highest average wage, while food preparation and serving related occupations had the lowest (see Table 1). Table 1. Statewide Occupational Wages OCCUPATIONAL GROUP EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL Management 128,110 $66.17 $60.80 $137,630 $126,460 Legal 25,280 $54.27 $39.37 $112,890 $81,900 Computer and mathematical 120,800 $50.10 $48.16 $104,210 $100,170 Architecture and engineering 68,360 $47.66 $45.74 $99,140 $95,130 Healthcare practitioners and technical 146,210 $44.74 $37.32 $93,060 $77,630 Life, physical, and social science 35,930 $40.65 $37.25 $84,560 $77,470 Business and financial operations 221,120 $40.56 $37.31 $84,370 $77,610 Arts, design, entertainment, sports, and media 36,660 $30.63 $27.54 $63,720 $57,290 Educational instruction and library 140,110 $29.65 $23.96 $61,670 $49,840 Protective service 57,130 $27.58 $23.21 $57,370 $48,270 Installation, maintenance, and repair 103,970 $27.10 $24.12 $56,380 $50,160 Community and social service 44,990 $26.89 $23.83 $55,920 $49,560 Construction and extraction 137,060 $26.18 $23.39 $54,450 $48,650 Sales and related 292,670 $25.73 $17.91 $53,510 $37,250 Office and administrative support 313,280 $22.00 $20.76 $45,770 $43,170 Transportation and material moving 193,860 $21.88 $18.41 $45,500 $38,280 Production 97,140 $21.83 $18.37 $45,400 $38,200 Personal care and service 54,790 $18.25 $14.64 $37,970 $30,450 Farming, fishing, and forestry 6,130 $18.03 $15.32 $37,500 $31,860 Building and grounds cleaning and maintenance 78,860 $17.91 $17.17 $37,240 $35,710 Healthcare support 95,850 $17.60 $17.36 $36,610 $36,100 Food preparation and serving related 223,030 $16.46 $14.38 $34,240 $29,910 Total all occupations 2,621,340 $30.24 $23.05 $62,900 $47,940 Regional Occupational Employment The most common occupations statewide were retail salespersons (78,650 workers), fast food and counter workers (68,890), and cashiers (53,550), and these were also the top three occupations in most of the substate areas (see Table 2). Table 2. Regional Occupational Employment AREA (total employment)#1 OCCUPATION (employment)#2 OCCUPATION (employment)#3 OCCUPATION (employment) Boulder MSA (181,940) Software developers (5,480) Retail salespersons (4,950) Fast food and counter workers (4,690) Colorado Springs MSA (287,800) Fast food and counter workers (9,830) Retail salespersons (8,950) Cashiers (7,080) Denver-Aurora-Lakewood MSA (1,464,790) Retail salespersons (40,790)Fast food and counter workers (36,120)Registered nurses (27,860) Fort Collins MSA (159,790) Retail salespersons (6,030) Fast food and counter workers (4,600) Registered nurses (3,850) Grand Junction MSA (62,250) Retail salespersons (2,250) Fast food and counter workers (2,010)Registered nurses (2,000) Greeley MSA (101,870) Fast food and counter workers (2,900)Heavy and tractor-trailer truck drivers (2,830) Retail salespersons (2,560) Pueblo MSA (60,330) Retail salespersons (2,340) Registered nurses (2,080) Home health and personal care aides (2,040) Eastern & Southern CO BOS Area (66,810) Cashiers (2,660) Retail salespersons (1,840) Fast food and counter workers (1,770) Southwest CO BOS Area (98,880) Retail salespersons (3,980) Cashiers (3,020) Fast food and counter workers (2,700) Northwest CO BOS Area (116,710) Retail salespersons (4,620) Waiters and waitresses (3,270) Cashiers (2,970) Go to www.colmigateway.com/admin/gsipub/htmlarea/uploads/OEWSregions-statewide-2021.pdf for a map of Colorado’s MSAs and BOS Areas. Regional Occupational Wages The Boulder MSA had the highest overall average and median wages and the Eastern & Southern Colorado BOS Area had the lowest (see Table 3). Both Boulder and Denver had average and median wages that are higher than the statewide average and median (see Table 1). Table 3. Regional Occupational Wages AREA EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL Boulder, CO 181,940 $35.27 $28.70 $73,360 $59,700 Denver-Aurora-Lakewood, CO 1,464,790 $32.09 $23.66 $66,750 $49,210 Fort Collins, CO 159,790 $28.42 $22.66 $59,120 $47,120 Colorado Springs, CO 287,800 $27.66 $22.01 $57,530 $45,790 Greeley, CO 101,870 $26.00 $22.22 $54,090 $46,210 Northwest Colorado BOS Area 116,710 $25.87 $22.11 $53,810 $45,980 Grand Junction, CO 62,250 $24.77 $18.66 $51,520 $38,810 Pueblo, CO 60,330 $24.75 $18.72 $51,480 $38,940 Southwest Colorado BOS Area 98,880 $24.32 $18.69 $50,590 $38,870 Eastern and Southern Colorado BOS Area 66,810 $23.02 $18.14 $47,890 $37,730 Statewide Location Quotients A location quotient (LQ) allows us to explore the occupational make-up of a state, MSA, or BOS Area by comparing the composition of jobs in an area relative to the national average. For example, an LQ of 2.0 indicates that an occupation accounts for twice the share of employment in an area than it does nationally. Compared to the US, Colorado demonstrated a higher share of employment in life, physical, and social science (LQ of 1.52), architecture and engineering (1.51), computer and mathematical (1.39), business and financial operations (1.31), and construction and extraction (1.26) occupations and a lower share of employment in production (0.62), farming, fishing, and forestry (0.73), management (0.77), and healthcare support (0.78) occupations. See Table 4 for detailed occupations with the highest LQs. Table 4. Statewide Occupational Location Quotients OCCUPATION EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL LQ Atmospheric and space scientists 1,060 $51.35 $48.65 $106,810 $101,180 6.65 Cartographers and photogrammetrists 1,180 $36.61 $36.83 $76,140 $76,600 5.03 Aircraft service attendants 1,090 $18.35 $18.18 $38,160 $37,810 4.80 Information and record clerks, all other 13,220 $23.16 $22.58 $48,180 $46,960 4.58 Geoscientists, except hydrologists and geographers 1,920 $51.80 $44.14 $107,750 $91,800 4.36 Real estate brokers 3,700 $40.10 $36.83 $83,410 $76,600 4.10 Hydrologists 460 $46.54 $44.93 $96,800 $93,450 3.89 Acupuncturists 520 $24.83 $22.88 $51,650 $47,580 3.89 Computer hardware engineers 5,270 $65.17 $61.76 $135,540 $128,460 3.84 Geographers 100 $42.51 $43.56 $88,410 $90,600 3.63 Landscape architects 1,140 $32.97 $29.82 $68,590 $62,020 3.52 Service unit operators, oil and gas 2,150 $27.75 $24.71 $57,710 $51,390 3.52 Conservation scientists 1,450 $34.94 $30.88 $72,680 $64,230 3.46 Forestry and conservation science teachers, postsecondary 70 * *$98,820 $82,330 3.37 Rock splitters, quarry 270 $22.43 $20.94 $46,650 $43,550 3.32 Epidemiologists 490 $39.15 $32.49 $81,420 $67,570 3.24 *Hourly wages are not calculated for this occupation. Regional Location Quotients The occupations with the highest concentrations of employment in each substate area were physicists in the Boulder MSA (LQ 30.94), religious workers, all other in the Colorado Springs MSA (10.01), geoscientists in the Denver-Aurora-Lakewood MSA (6.09), conservation scientists in the Fort Collins MSA (24.84), service unit operators, oil and gas in the Grand Junction MSA (17.69) and in the Greeley MSA (41.89), substance abuse, behavioral disorder, and mental health counselors in the Pueblo MSA (4.55), graders and sorters, agricultural products in the Eastern & Southern Colorado BOS Area (21.20), rock splitters, quarry in the Southwest Colorado BOS Area (17.62), and loading and moving machine operators, underground mining in the Northwest Colorado BOS Area (16.43). More location quotients are available at www.colmigateway.com (Products & Resources: Data OR Data Trends > Employment and Wage Data > Occupation Data: LMI Gateway Related Items). Spotlight on: Transportation and Material-Moving Occupations The Transportation and Material-Moving group includes occupations such as heavy and tractor-trailer truck drivers, stockers and order fillers, flight attendants, bus drivers, locomotive engineers, wellhead pumpers, and conveyor operators and tenders. There were 193,860 workers employed in this group in Colorado in 2021, with an average hourly wage of $21.88 and a median hourly wage of $18.41. Figure 1. Transportation and Material-Moving Occupations – Top Occupations *Hourly wages are not calculated for this occupation. 3,360 4,050 4,080 4,090 5,730 6,310 8,780 10,530 12,080 16,300 26,640 27,540 42,560 0 10,000 20,000 30,000 40,000 50,000 Shuttle drivers and chauffeurs $16.14 Bus drivers, school $20.56 Airline pilots, copilots, and flight engineers* $ NA Flight attendants* $ NA Cleaners of vehicles and equipment $16.10 Packers and packagers, hand $15.44 Industrial truck and tractor operators $20.82 1st-line supervisors of transp. & material-moving workers $29.95 Driver/sales workers $16.86 Light truck drivers $21.55 Heavy and tractor-trailer truck drivers $25.73 Laborers and freight, stock, and material movers, hand $18.39 Stockers and order fillers $16.69 Transportation and Material-Moving Workers Top Occupations by Employment Mean Hourly Wage, May 2021 Figure 2. Transportation and Material-Moving Occupations – Regional Employment Table 5. Transportation and Material-Moving Occupations – Regional Top Occupation by Location Quotient AREA TITLE EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL LOCATION QUOTIENT Boulder MSA Motor vehicle operators, all other 170 $16.45 $14.91 $34,220 $31,010 2.72 Colorado Springs MSA Aircraft service attendants 100 $15.42 $13.87 $32,070 $28,850 4.03 Denver-Aurora-Lakewood MSA Aircraft service attendants 660 $18.61 $18.18 $38,700 $37,810 5.23 Fort Collins MSA Motor vehicle operators, all other 140 $17.12 $14.52 $35,620 $30,210 2.46 Grand Junction MSA Motor vehicle operators, all other 60 $15.00 $13.79 $31,210 $28,690 2.93 Greeley MSA Motor vehicle operators, all other 120 $16.27 $14.28 $33,850 $29,700 3.47 Pueblo MSA Crane and tower operators 80 $26.89 $22.62 $55,940 $47,040 4.46 Eastern & Southern Colorado BOS Area Transportation inspectors 50 $24.76 $23.08 $51,500 $48,010 3.95 Southwest Colorado BOS Area Motor vehicle operators, all other 80 $14.76 $13.60 $30,690 $28,290 2.30 Northwest Colorado BOS Area Aircraft service attendants 150 $17.46 $14.65 $36,320 $30,480 15.08 New Occupations in the 2018 Revision of the Standard Occupational Classification The May 2021 estimates are the first OEWS estimates based solely on survey data collected using the 2018 Standard Occupational Classification (SOC). With the May 2021 estimates release, OEWS is publishing data for most 2018 SOC detailed occupations. For all 2018 SOC titles and definitions, please see the BLS 2018 SOC page. Table 6. Statewide 2018 SOC Occupations – Split Occupations SOC CODE OCCUPATION EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL 11-2032 Public relations managers 820 $72.87 $63.24 $151,580 $131,540 11-2033 Fundraising managers NA $62.12 $60.43 $129,210 $125,690 11-3012 Administrative services managers 1,530 $62.94 $60.43 $130,920 $125,690 11-3013 Facilities managers 1,390 $51.55 $47.76 $107,220 $99,330 19-3033 Clinical and counseling psychologists 980 $41.71 $58.24 $120,140 $121,130 19-3034 School psychologists 1,190 $49.63 $39.40 $86,760 $81,940 19-4012 Agricultural technicians 140 $24.41 $47.60 $103,240 $99,010 19-4013 Food science technicians 150 $27.26 $22.55 $50,780 $46,910 29-2042 Emergency medical technicians 2,990 $17.11 $28.73 $56,690 $59,770 29-2043 Paramedics 1,620 $25.55 $17.36 $35,590 $36,100 NA – Employment or wage not available 4,580 4,800 5,390 6,440 6,880 7,910 9,650 10,130 17,390 118,460 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Grand Junction MSA $19.26 Pueblo MSA $19.10 Eastern and Southern Colorado BOS Area $19.49 Southwest Colorado BOS Area $19.43 Northwest Colorado BOS Area $20.98 Boulder MSA $22.20 Greeley MSA $21.07 Fort Collins MSA $19.60 Colorado Springs MSA $18.63 Denver-Aurora-Lakewood MSA $22.97 Transportation and Material-Moving Occupations Regional Employment and Mean Hourly Wage, May 2021 Table 7. Statewide 2018 SOC Occupations – New Occupations SOC CODE OCCUPATION EMPLOYMENT MEAN HOURLY MEDIAN HOURLY MEAN ANNUAL MEDIAN ANNUAL 11-9072 Entertainment and recreation managers, except gambling 430 $45.66 $45.17 $94,980 $93,960 11-9171 Funeral home managers 70 $38.55 $36.62 $80,190 $76,160 11-9179 Personal service managers, all other 140 $23.30 $22.45 $48,460 $46,690 13-1082 Project management specialists 24,710 $47.31 $46.65 $98,410 $97,040 13-2054 Financial risk specialists 1,010 $50.34 $47.76 $104,710 $99,330 15-1243 Database architects 1,750 $64.35 $61.39 $133,860 $127,690 15-1253 Software quality assurance analysts and testers 4,730 $47.54 $47.76 $98,870 $99,330 15-1255 Web and digital interface designers 1,810 $37.82 $30.23 $78,660 $62,880 15-2051 Data scientists 3,070 $50.86 $49.24 $105,790 $102,410 17-3028 Calibration technologists and technicians 250 $39.97 $38.33 $83,130 $79,730 19-4044 Hydrologic technicians 140 $27.82 $25.32 $57,860 $52,670 27-4015 Lighting technicians 20 $25.61 $23.48 $53,270 $48,840 29-1212 Cardiologists 510 NA NA NA NA 29-1213 Dermatologists 300 $108.64 $62.38 $225,970 $129,750 29-1214 Emergency medicine physicians 880 $140.61 NA $292,460 NA 29-1217 Neurologists 80 $149.82 NA $311,630 NA 29-1222 Physicians, pathologists 130 $100.00 $80.03 $208,000 $166,460 29-1224 Radiologists 450 $161.81 NA $336,560 NA 29-1241 Ophthalmologists, except pediatric 230 $122.38 $81.27 $254,550 $169,040 29-1242 Orthopedic surgeons, except pediatric 480 $135.65 NA $282,140 NA 29-2036 Medical dosimetrists NA $63.72 $62.80 $132,540 $130,610 39-4012 Crematory operators 80 $29.17 $27.88 $60,670 $57,990 53-6032 Aircraft service attendants 1,090 $18.35 $18.18 $38,160 $37,810 NA – Employment or wage not available The Colorado Occupational Employment and Wage Statistics Survey In Colorado, 3,736 businesses were initially surveyed beginning in November of 2020 and 3,894 were initially surveyed beginning in May of 2021. After excluding establishments that were out of business or out of scope, a total of 81.4 percent of 7,221 businesses provided information on the job titles and wages of their employees. These data were combined with responses from the previous two years (four biannual surveys) to produce the May 2021 occupational estimates highlighted in this document. OEWS data are available from BLS at www.bls.gov/oes/tables.htm and on the CDLE LMI website at www.colmigateway.com (Products & Resources: Data OR Data Trends > Employment and Wage Data > Occupation Data: LMI Gateway Related Items). Industry-specific data (NAICS Sector and 3- and 4-digit, Excel files) are available at www.bls.gov/oes/current/oes_research_estimates.htm. 1 The median wage (50th percentile wage) is the point at which one-half of workers make less than the amount and one-half make more. 2 Employment covered by state unemployment insurance laws or, for federal workers, covered by the Unemployment Compensation for Federal Employees program. Technical Note The OEWS survey is a semiannual survey measuring occupational employment and wage rates for wage and salary workers in nonfarm establishments in the United States. The OEWS data available from BLS include: cross-industry occupational employment and wage estimates for the nation and for over 580 areas, including states and the District of Columbia, MSAs, nonmetropolitan areas, and territories; national industry-specific estimates at the NAICS sector, 3-digit, most 4-digit, and selected 5- and 6-digit industry levels; and national estimates by ownership across all industries and for schools and hospitals. OEWS data are available at www.bls.gov/oes/tables.htm. OEWS estimates are constructed from a sample of about 1.1 million establishments. Each year, two semiannual panels of approximately 179,000 to 187,000 sampled establishments are contacted, one panel in May and the other in November. Responses are obtained by Internet or other electronic means, mail, email, telephone, or personal visit. The May 2021 estimates are based on responses from six semiannual panels collected over a 3-year period: May 2021, November 2020, May 2020, November 2019, May 2019, and November 2018. The unweighted sampled employment of 82 million across all six semiannual panels represents approximately 62 percent of total national employment. The overall national response rate for the six panels, based on the 50 states and the District of Columbia, is 67.2 percent based on establishments and 64.5 percent based on weighted sampled employment. For more information about OEWS concepts and methodology, go to www.bls.gov/oes/current/oes_tec.htm. The May 2021 estimates are the first OEWS estimates based entirely on survey data collected using the 2018 SOC. The May 2019 and May 2020 estimates were based on a combination of survey data collected using the 2010 SOC and survey data collected using the 2018 SOC and used a hybrid of the two classification systems. May 2021 OEWS data are available for most 2018 SOC detailed occupations. To improve data quality, the OEWS program has replaced some 2018 SOC detailed occupations with SOC broad occupations or OEWS-specific aggregations. Information about the SOC system is available on the BLS website at www.bls.gov/soc and information about the NAICS system is available at www.bls.gov/bls/naics.htm. New estimation methodology With the May 2021 estimates, the OEWS program has implemented a new estimation method. This new model-based method, called MB3, has advantages over the previous estimation method, as described in the Monthly Labor Review article “Model-Based Estimates for the Occupational Employment Statistics program .” Technical information is available in the Survey Methods and Reliability Statement for the MB3 Research Estimates of OEWS . Substate area definitions The substate area data published in this release reflect the standards and definitions established by the US Office of Management and Budget. Additional information Answers to frequently asked questions about OEWS, including uses of OEWS data, are available at www.bls.gov/oes/oes_ques.htm.