Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

January 27, 2012 • 9:24 am 0

Social Security keeps millions of seniors – especially women – out of poverty

Over the last two years, 47% of women and 35% of men reported reduced confidence in having enough financial resources to last through retirement – and rightfully so. The stock market crash emptied out retirement accounts, the real estate crash put people’s homes “underwater”, and the “jobless recovery” brought lower wages and fewer workplace benefits, all of which make it difficult to rebuild retirement savings.

But through it all, Social Security is still paying full benefits and keeping millions of people out of poverty in retirement. And not only is it largely immune to the wild swings of the stock market and the economy, Social Security is also perhaps the most successful anti-poverty program in American history – particularly for women.

Why? Women tend to live longer than men, are paid less, and are more likely to take time away from work to care for children. As a result, they often have smaller retirement savings accounts. But while women do tend to have a lower Social Security benefit than men ($3,000 less per year, on average), it makes up a much bigger part of their total retirement income.

Of the more than 1 million Washington residents who receive Social Security benefits each month in Washington, 424,000 are women over age 65. Thanks to Social Security, just 10% of Washington women over 65 live in poverty. Without Social Security, that number would jump to 43%. Social Security is an essential economic support for all Americans, older women in particular. You can learn more about protecting and strengthening Social Security for Washington state at Social Security Works – Washington.

Filed under: retirement security, ,

January 20, 2012 • 8:45 am 0

Gender wage gap as bad now as in 1991

It is no secret that men, on average, earn more than women. But despite successful campaigns for social equality in America the last half-century, the gender wage gap has not shown significant improvement since 1990 – even with a changing labor force.

In Washington, the gender wage gap has actually worsened in some respects since 1990. The inflation-adjusted gap in median hourly wages in Washington has barely improved in the last 20 years, and men still out-earn women by more than $5.00 per hour.

Washington women earn less than men in every industry, even those that are female-dominated. The median annual earnings of women in education, health care, and social assistance jobs are about two-thirds those of their male counterparts. In 2010, women’s monthly earnings were only 63% of men’s, a 2% decrease from 1991. Read the rest of this entry »

Filed under: state economy, , , , ,

December 19, 2011 • 10:57 am 0

Report: Working Women Falling Behind in WA

Washington's Working Women 2012

From the Washington News Service:

SEATTLE – For women in the workforce in Washington, 2011 could be summarized as a year of treading water – or even sinking a bit. According to a new report, women’s wages and benefits in the Evergreen State continue to lag behind those of men. Even in the same job and age range and with similar education, a woman’s average monthly pay is 63 percent of what a man earns per month.

When the recession began, men were laid off at a faster pace than women. But Tatsuko Go Hollo, policy associate with the Economic Opportunity Institute (EOI), says now that the recovery is officially under way, that trend has reversed.

“Men are returning to work – slowly, but they are starting to gain jobs again – whereas we’re seeing women actually have continued to lose jobs. A big factor in that is that women are concentrated in a lot of the public-sector jobs.”

She notes that two of the hardest-hit professions, teachers and administrative personnel in state government, are largely comprised of women. The report says almost 15 percent of Washington women live in poverty – many as single mothers.

The state minimum wage will top $9 an hour for the first time starting in January. For full-time work, that means an annual income of about $19,000. Go Hollo says it will be a big help for low-wage and part-time workers, but even people who make almost twice that amount have a hard time supporting a family in the Seattle area.

“Even though $35,000 might sound okay for maybe one person, when you factor in taking care of those two children – their child care costs and what it takes to prepare them for school and keep them healthy – those bills really start to add up.”

Two-thirds of Washington children in single-parent families now live in poverty, the report says.

It also covers workplace benefits, which are eroding for all full-time workers. For example, only 54 percent of employers in Washington offer health insurance, down from 76 percent 10 years ago. In the same time period, the number of companies that offer retirement benefits dropped from 60 percent to 36 percent.

The report, “Washington’s Working Women 2012,” is available at www.eoionline.org.

Filed under: state economy, , ,

December 16, 2011 • 8:17 am 0

Women’s economic security at risk from widening wage gap, lack of benefits

Washington's Working Women 2012 (2.5MB)

A widening gender wage gap, declining workplace benefits, and state budget cuts are putting Washington’s women at risk for more economic instability and poverty in 2012, according to a new report from the Economic Opportunity Institute, Washington’s Working Women 2012.

Women continue to earn less than men overall – and the gap is widening. In 2010, women brought home just 63% of men’s monthly earnings – an average difference of nearly $1,900. That ratio is worse than 1991, when women made 65% of men’s average monthly pay.average monthly eanrings, men and women

Declining workplace benefits are also endangering women’s economic security. In 2010, Washington firms were less likely to offer every type of workplace benefit than in 2002.

  • In 2002, 76% of firms provided health insurance to full-time employees; just 54% provided the benefit in 2010.
  • In 2002, 60% of firms offered retirement benefits to full-timers, down to 36% in 2010.
  • In 2002, 56% of firms offered sick leave to full-timers, down to 44% in 2010.

Part-time workers – the majority of whom are women – are also less likely to receive every type of benefit. In 2010, just 15% of businesses provided retirement benefits, 22% provided vacation and 11% offered health benefits to part-time workers.

firms-offering-benefits-wa-2010

The private sector began to show signs of recovery in 2010, but many of the jobs gained were in the male-dominated sectors of manufacturing, wholesale trade and software publishing. And as state budget problems compound, public sector cuts have hit women particularly hard. Between February 2010 and October 2011, 6,000 jobs in public schools were cut – 74% of which were held by women.

All of these factors have contributed to more Washington women – and their children – living in poverty. In 2010, Washington women were more likely to live in poverty than men, with more than 1 in 7 females (14.5%) living below the poverty line. And two-thirds (63%) of children in single-parent families live below 200% of poverty. wa children living in poverty 2010Women will continue to struggle to achieve economic security until employers and policymakers take adequate steps to reduce gender gaps in earnings, access to benefits, and likelihood of experiencing poverty throughout life.

Across the country – and in Seattle – advances have been made or proposed to help increase worker economic security. Ultimately, building a better work environment for women will also contribute to a stronger economy for Washington.

Filed under: state economy, , , ,

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