Group says 39% growth in Health Care cost is the Culprit.
(SALEM, Ore.) - The high cost of health care, elevated prices in housing, utilities and transportation are the main reasons why the cost of living is outpacing the actual wages of Oregonians.
The cost of living is the amount of money that is needed for an individual or family to meet their basic needs. A living wage is the calculated wage that would fully cover the cost of living.
In Marion County the living wage is $22.51 per hour for a family of four. Between 2002 and 2006, the increase in the cost of living grew 1.5 times faster than actual wages. Oregon has seen actual wage growth at 10.86%, but that increase is overshadowed by the 39.22% increase in health care costs.
These are the finding of the annual study: Living in the Red, Northwest Family Budgets Falling Behind: 2007 Northwest Job Gap Study, compiled by the Northwest Federation of Community Organizations.
Two reasons why health care costs are draining family budgets are high out-of-pocket expenses and cost-shifting by employers onto employees due to skyrocketing health insurance premiums. According to the report, as costs continue to rise, so does the number of uninsured. Further, the report cites national surveys that have shown that cost is the primary reason for why people are uninsured.
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“When hard work just doesn’t cut it, we need to find real solutions,” said Marcy Westerling, Director of the Rural Organizing Project.
“The Job Gap study points out that health care is the biggest reason why wages are falling behind the cost of living. Oregon families are hanging in the balance, living paycheck to paycheck. At Rural Organizing Project, we believe health care is a human right. Our State Legislature needs to do more to make sure all Oregon families can lead healthy, stable lives. Considering that healthcare is the first expense families cut to make ends meet then social programs like SCHIP are critical in filling the void. Overriding the SCHIP veto is a step forward for the future of all Oregonians, and everyone in our nation.”
The report has calculated that a single adult in Oregon must earn at least $11.67 an hour to afford basic necessities. For a household of one adult and two children, the breadwinner would have to earn $24.48 an hour to make ends meet.
Competition for living wage jobs is high. Currently, for every four job seekers there is only one available job that pays $11.67 an hour. For jobs that pay $24.48 an hour, the ratio is even higher at 16 job seekers for 1 open job that pays a living wage.
The report also points to high gas, oil and housing prices that have pushed up the living wage. Meanwhile Congress is considering another $190 billion in war funding. Marion County’s share is $102,700,000.
“We have seen a steady decline in wages and a disturbing trend of increases in basic necessities. The wage gap between high and low income families continues to grow and the number of jobs that offer a living wage has not grown as fast as service jobs offering a minimum wage. More families are living in poverty and are struggling,” said Kate Poole of First Congregational Church United Church of Christ in Salem.
“In our community, we have members that have to make the difficult choices every day of paying for prescriptions, heating their homes or serving nutritional meals to their children.”
Source: News Release from Rural Organizing Project
Cost of Living Rising Faster Than Actual Wages in OregonSalem-News.com