Low-paying jobs in Minnesota now pay a bit more

Fewer openings offer under $10 an hour, but 3 in 5 pay less than $15, state reports.

March 22, 2016 at 1:11PM
Waiter Kenneth Daniels waited on tables at Vivo, Monday, February 16, 2015 in Apple Valley, MN.
Wages are rising at the lowest end of the pay scale in Minnesota, particularly in jobs at restaurants, coffee shops and other part-time work. February 2016 file photo of waiter Kenneth Daniels at Vivo in Apple Valley. (Star Tribune/The Minnesota Star Tribune)

Fewer job openings in Minnesota pay less than $10 per hour.

Median wages for new retail salespeople, cooks, hotel clerks, home health aides, switchboard operators and security guards all edged across the $10 mark in 2015, according to the latest Job Vacancy Survey, the state's twice-annual report on the jobs that are available and what they pay.

Employers' modest sweetening of job offers will be cold comfort to most low-wage workers in the state. Three in five job openings still pay less than $15 per hour, a share of openings that has not changed for five years.

But it does mark a noticeable shift. Five years ago, more than a third of all available jobs in the state paid less than $10 per hour. At the end of 2015, only 13 percent, or 12,614, of open jobs paid so little.

The increase in the state minimum wage that started in 2014, and a tighter overall job market, have combined to lift low-end wages — not just for those earning minimum wage.

"It's pretty clear that those wages started to rise with the first minimum wage increase," said Oriane Casale, a labor market analyst for the state. "That's affecting a certain share of jobs at the very low end. It's also potentially pushing up the wages of $9 and $10 and $11 an hour jobs."

Minnesota's minimum wage rose to $8 per hour in August 2014, rose again to $9 per hour in August 2015, will rise again to $9.50 per hour in August, and starting in 2018 will be tied to inflation.

It's impossible to separate the effect of that legislative action from the effects of a low unemployment rate, which textbook supply and demand maxim suggests would lift wages, Casale said. She added, "The fact that the wages are increasing more consistently and more rapidly at that very lowest end now, just in conjunction with when the minimum wage started going into effect, I think is pretty clear evidence that that has had an impact."

Waiters and waitresses, fast-food workers and cashiers — job categories with thousands of openings — all saw wage offers rise in 2015, according to the survey.

The overall picture in Minnesota remains that most openings don't pay a wage that can support a family. Of the record 96,114 openings at the end of last year, 59,095 pay less than $15 an hour. That was 61.5 percent of all openings, a share that has held steady since 2011.

Several high-demand, well-paid positions are in medicine: pharmacists, medical scientists, pediatricians, surgeons and other types of doctors.

Outside health care, industrial machinery mechanics, who are being offered $20.81 per hour, heating and air conditioning installers, who are being offered $21.10 per hour, and marketing managers, who are being offered $47.83 per hour, have seen wages rise as firms post large numbers of openings.

Adam Belz • 612-673-4405

Mary Perkins, left, received help from shoe salesperson Matt Morseth at Schuler Shoes, Wednesday, October 15, 2014 in St. Louis Park, MN. Schuler Shoes celebrates its 125th year in business this year, a remarkable feat, considering the dwindling number of family-owned, independent shoe stores.
Mary Perkins, left, received help from shoe salesperson Matt Morseth at Schuler Shoes, Wednesday, October 15, 2014 in St. Louis Park, MN. Schuler Shoes celebrates its 125th year in business this year, a remarkable feat, considering the dwindling number of family-owned, independent shoe stores. (Star Tribune/The Minnesota Star Tribune)
about the writer

about the writer

Adam Belz

Reporter

Adam Belz was the agriculture reporter for the Star Tribune.

See Moreicon

More from Business

See More
Ten skids of loose peanut butter crackers wait to go to the land fill Saturday Feb. 7, 2009 as Gleaners Food Bank destroys products containing peanut butter as part of the nation wide recall of foods containing Salmonella tainted products from Peanut Corp. of America . (AP Photo/The Indianapolis Star,Michelle Pemberton)
The Minnesota Star Tribune

Gold Star Distribution, which supplies several Halal markets in the Twin Cities, is voluntarily recalling a list of food and merchandise products stretching 44 pages and including products from candy to medicine.

card image
card image