Only about half the male workers in Minnesota earn a wage that allows them to provide even a basic, "no frills" standard of living for the traditional family of four, according to a new report by JOBS NOW Coalition. Only about one in three female workers in the state earns enough to support herself and one child.

The ability or inability of working families to make ends meet is spelled out in the Coalition's new report, "The Cost of Living in Minnesota." The report, like one issued in 1998, provides dollars-and-cents detail on how much it actually costs families to scrape by and what incomes they need to do so.

The report calculates the costs of food, housing, health care, taxes, transportation, clothing and other necessities, plus child care in families where all adults work. It also breaks down those costs by region and by a variety of family types and sizes.

The figures provide credible ammunition in determining what a "living wage" actually means. For a family of four, with one adult working full time, that would be $14.65 statewide, but $16.12 in the Twin Cities metro area. For a single parent with one child, it would be $13.94 statewide, but $15.15 in the Twin Cities.

No-frills living
The Coalition's "self-sufficiency standard," upon which the report is based, allows no money for pets, movies, gifts, vacations, restaurant meals, or major appliances such as a washer, dryer and refrigerator. It sets aside no money for renter's insurance or life insurance, has no extra money to save for a mortgage down payment, and sets aside nothing for emergencies, retirement or a child's education. There is no extra cash to pay off debts or to pay for college or other training after high school.

While the self-sufficiency standard is "more than bare subsistence, it is not luxurious or even comfortable," the report says. It "falls short of what would usually be called a middle-class standard of living."

The report's authors say the figures give a much more realistic picture of how much it costs to sustain a family than either the federal government's official poverty guidelines or the state of Minnesota's welfare eligibility limits. For example, the report says a single parent with one child needs an annual income of $29,004. The federal poverty guideline for the same family is $11,610; the state's welfare program, the Minnesota Family Investment Program, caps income eligibility for that same family at $13,932.

Different folks in different straits
The report, both directly and indirectly, highlights some of the uneven impacts the new economy has on families. For instance:

The percentage of male workers who could support a traditional family of four two children, one parent working, one parent at home has improved slightly from the 1998 report, from 50.4 to 51.7.

The percentage of female workers who could support themselves and one child has declined significantly, from 46.8 to 37.9, in the past few years.

Living outside the seven-county Twin Cities region is 16 percent less expensive but average wages outstate are 31 percent less.

Overall, the self-sufficiency cost of living has increased 12 percent since the 1998 report, but transportation is 27 percent higher and health care is 17 percent higher. Overall inflation was about 9 percent for the same period.

Since 1998, the self-sufficiency cost of living has increased dramatically for some: 33 percent for a single parent with one child, 30 percent for a single adult, and 18 percent for a family with one child in which both parents work.

What's a living wage?
According to Jobs Now Coalition, these are the hourly wages needed to provide a "no frills" standard of living in the seven-county metro area.

This article was written for The Union Advocate newspaper. Used by permission. The Union Advocate is the official publication of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@mtn.org

For more information

Visit the JOBS NOW website: http://www.jobsnowcoalition.org