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presents :

presents :. Dr. Maria Claret Mapálad-Ruane. Professor of Economics, University of Guam. Which Hourly Wage Rate?. (Maria) Claret M. Ruane, Ph.D. University of Guam Professor of Economics, School of Business and Public Administration

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  1. presents:

  2. Dr. Maria Claret Mapálad-Ruane Professor of Economics, University of Guam

  3. Which Hourly Wage Rate? (Maria) Claret M. Ruane, Ph.D. University of Guam Professor of Economics, School of Business and Public Administration Resident Development Economist, Pacific Center for Economic Initiatives mcruane@uguam.uog.edu

  4. Calculations by C. Ruane (April 9, 2014); Multiple references were used to prepare this table (please email mcruane@uguam.uog.edu for details)

  5. Joseph P. Bradley Senior Vice President & Chief Economist, Bank of Guam

  6. GuamWage and Compensation Forum2014___ECONOMY presented by Joseph P. Bradley SVP/Chief Economist Bank of Guam April 10, 2014

  7. Guam’s Payroll Employment – QIV:2013 • There were 61,840 jobs filled • Many people are counted more than once because they have more than one job • The private sector accounts for 74.8% of all jobs

  8. Guam’s Payroll Employment – QIV:2013 • There were 61,840 jobs filled • Many people are counted more than once because they have more than one job • The private sector accounts for 74.8% of all jobs • Females fill 43.5% of all jobs, but 52.5% of all public sector jobs • 81.2% of the jobs filled by females are in retail trade, the service industry or government • Males fill 56.5% of all jobs, but 59.6% of all private sector jobs • 81.5% of the jobs filled by males are in construction, retail trade, the service industry or government

  9. Private Production Jobs – QIV:2013 • Out of 46,270 private sector jobs filled, 38,500 (83.2%) were in non-supervisory positions • Those are the jobs for which we have average earnings and hours worked data • These data show that females tend to concentrate in lower-earning industries than do males • 22.8% of female jobs are in retail trade, where average weekly earnings are the lowest, at $345.07 • 28.0% of female jobs are in the service industry, where average weekly earnings are the fourth lowest, at $429.47 • (30.4% are in the public sector, for which I do not have comparable earnings data, but they are likely higher)

  10. Private Production Jobs – QIV:2013 • Out of 46,270 private sector jobs filled, 38,500 (83.2%) were in non-supervisory positions • Those are the jobs for which we have average earnings and hours worked data • These data show that males tend to concentrate in higher-earning industries than do females • 15.5% of male jobs are in retail trade, where average weekly earnings are lowest, at $345.07 • 25.5% of male jobs are in the service industry, where average weekly earnings are fourth lowest, at $429.47 • 19.3% of male jobs are in construction, where average weekly earnings are second highest, at $605.12 • 21.2% of male jobs are in the public sector

  11. Earnings Disparities – QIV:2013 • At this juncture, the numbers become more tenuous, since I have to apply production worker earnings to all male and female jobs • Thus, it is estimated that males’ average weekly earnings are 13.3% higher than females’ • This, though, appears to be related more to industrial concentrations instead of any pattern of discrimination • However, keep in mind that these figures are rough estimates, and by no means conclusive • I can, though, talk about earnings disparities over time

  12. The Minimum Wage • A hot topic, especially since President Obama brought it up in the 2013 State of the Union • Little chance it will pass Congress, though, making it a big campaign issue this year • Wage rates don’t matter; it is what you can buy with those wages that is important • The minimum wage in Guam, adjusted for inflation, has not fared very well over the years • It’s has less than half the purchasing power that it had 30 years ago

  13. The Minimum Wage • A hot topic, especially since President Obama brought it up in the 2013 State of the Union • Little chance it will pass Congress, though, making it a big campaign issue this year • Wage rates don’t matter; it is what you can buy with those wages that is important • The minimum wage in Guam, adjusted for inflation, has not fared very well over the years • It’s has less than half the purchasing power that it had 30 years ago • A $10.10 minimum wage would get us back to where we were in the middle of 1992

  14. Conclusion • I hope that this has been informative (What did you expect in five minutes?) • I also hope that it stimulates discussion and, eventually, action

  15. Gary A. Hiles Chief Economist, Department of Labor (Gov. of Guam)

  16. April 10, 2014Wage and CompensationForumGuam Women’s Chamber of CommerceMarriott Resort Hotel Gary A. Hiles Chief Economist, Department of Labor Bureau of Labor Statistics

  17. Outline of Presentation Sources of Guam Statistics Gender Gap? - Income Influenced by: Work – Labor Force Characteristics Employment by Industry & Sector Education Level & Occupation Women’s Earnings Minimum Wage Minimum Wage Proposal Impact Flows of Funds and Business Revenue Sources Government Employment Trends Recommendation for Additional Research – More Census 2010 Cross-tabulations Comments Requested

  18. Review of Key Guam Economic & Statistics Sites • www.dol.guam.govDepartment of Labor, Bureau of Labor Statistics • www.visitguam.org Guam Visitors Bureau • www.bsp.guam.gov Bureau of Statistics & Plans • www.bbmr.guam.govBureau of Budget & Management Research (BBMR) • www.guamopa.com The Office of Public Accountability • www.investguam.comGuam Economic Development Authority

  19. Review of Key Guam Statistics Resources Federal Statistics (Includes Guam) • U.S. Department of Commerce, Census Bureau • www.census.govEconomic, Population & County Business Patterns • U.S. Department of Labor, Bureau of Labor Statistics • www.bls.govData query & report generation wages. • Bureau of Economic Analysis (BEA) • www.bea.govGross Domestic Product Statistics

  20. Website – GUAM DOL - BLS

  21. Website – GUAM DOL - BLS

  22. Labor Force Characteristics

  23. Employment by Industry, Sector & Sex

  24. Educational Attainment by Age & Sex

  25. As of April 2, 2014 • Bill Summary & Status: Motion to proceed to consideration of measure made in Senate. • 113th Congress S. 1737 • Minimum Wage Fairness Act – Amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $8:20 an hour beginning on the first day of the sixth month after the enactment of this Act, (2) $9.15 an hour beginning one year after the date of such initial increase, (3) $10.10 an hour beginning two years after the date of such initial increase, (3) $10.10 an hour beginning two years after such date, and (4) the amount determined by the Secretary of Labor (based on increases in the Consumer Price Index) beginning three years after such date and annually thereafter.

  26. Minimum Wage Impact & Women • Women in the workforce are more highly concentrated in low-wage sectors such as personal care and healthcare support occupations. • Women account for more than half (55 percent) of all workers who would benefit from increasing the minimum wage to $10.10 The Impact of Raising the Minimum Wage on Women March 2014 The White House

  27. Flow of Funds to Guam FY 2010

  28. Business Revenue by Class of Customer • Source: 2007 Guam Economic Census

  29. Business Revenue by Sector

  30. Economic Census Summary 2002 & 2007

  31. Thanks • Thank you for responding to our surveys. • 2012 Economic Census publication is scheduled for release April 29, 2014. • Your comments and ideas are solicited. gary.hiles@dol.guam.gov • You may also submit comments on our website: www.dol.guam.gov

  32. Roseann M. Jones, Ph.D. Professor of Economics, University of Guam (See website for separate download.)

  33. Wage & Compensation Forum • Roseann M. Jones April 10, 2014

  34. Wage Effects Wage Effects ⎯ on overall economic activity ⎯ of an increased minimum wage ⎯ of income inequality

  35. ...On Economic Activity Wal-Mart’s market is the bottom 60 percent of families and with both male and female real earnings now falling for those families, the purchasing power of their current customers has to decline. No one can sell more to those who have less. Lester C. Thurow, MIT

  36. ...Of MinimumWage Increase What’s wrong with rising wages, anyway? In the past, wage increases of about 4 percent a year – more than twice the current rate – have been consistent with low inflation. Paul Krugman, Princeton

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