Cost of Living Rising Faster Than Actual Wages in Oregon

(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.

“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.”

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.”

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Comments Leave a comment on this story.

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jenna raby November 8, 2007 11:46 am (Pacific time)

This kind of story just makes our mission at Laborfair.com more and more of a pressing need in this country. Every time I read a story like this and comments like the one from eazymoney above, I am incensed and so proud to be the founder of a mission driven business that is dedicated to advocating for the living wage to our nation's independent work force. Check out my blog http://blog.laborfair.com and our website www.laborfair.com--we'll be up by you soon.

D. Lamkid November 7, 2007 4:52 pm (Pacific time)

Well, we have an oil man in the White House, and so skyrocketing oil prices are good for him. We have health insurance companies making billions, that's good for them. When will people realize that single payer health system is the only way, get rid of insurance companies and their scams! And, get rid the oil men in control of the White House.

EazyMoney November 7, 2007 11:09 am (Pacific time)

I suppose I could take the Smart Bus. But then It would put me here about an hour late. And since I open, it wouldn't really be any problem to change everyones schedules to accommodate my own. I'm sure no one would disagree. Wow.. Move.. now theres a novel Idea.. except I'd be moving out of my daughters school district. Which is why I haven't moved in the first place. Don't think I haven't thought about it though. And I would ride a bike yes I have one and no I'm not too good to ride it.. except for 40 miles one way is a bit excessive. I went through an adjustment 2 years ago, just for your info. How is my mentioning I pay child support whining? If I don't pay it, I'm a dead beat dad.. But If I do pay it and mention it, I'm whining about it? F-you Neal.. your retarded and out of touch with reality.

Anonymous November 7, 2007 8:44 am (Pacific time)

Mass transit from Salem to Wilsonville - SMART. It is a bus that runs between the two cities and until recently was completely free. Or how about this nugget? If you cannot commute to work in a car you cannot afford maybe you should MOVE so you are closer to your work? Should it take a genius to figure out such common sense for you? And maybe you SHOULD ride a bike. Millions do. Why do you think you are so much better than they are? Are you too good to ride a bike? And as for child support and things changing in ten years you can go to court to get adjustments. Have you even tried? And if you have been divorced 10 yrs likely your whining about child support should come to an end soon. Yes whining. It is your responsibility, deal with it, don't cry about it. Ah well...

Henry Ruark November 7, 2007 8:18 am (Pacific time)

Neal et al: All of us react from own personal situation. For far too many, mobility demanded on job by car is only answer, covered by company or NOT. Happens all four sons "in the media" in that situation, unable to cut costs per Neal's own answer, works for him. Re arrival of children, all surely know circumstance then and later bear heaviest burden for that; but Thank God they arrive ! Makes life worthwhile no matter allatherest...

EazyMoney November 7, 2007 8:11 am (Pacific time)

Mass Transit from Salem to Wilsonville? You've got to be kidding. Name one example of mass transit that would work for me? As for my child.. Well I've been divorced over ten years. Certainly things were different ten years ago. Not to mention another income coming in from my ex-wife. So your logic about reconsidering children is pretty lame at best. Because my situation has changed completely. But it is on par with your mass transit idea. Maybe I should ride a bike... Pfffft....

Sue November 7, 2007 7:18 am (Pacific time)

Neal, your solutions for EazyMoney are too simple. You have no idea if mass transit is available from his area or the time he has to work. As for the children, it could be that life was easier when he had them. I don't know. I am just trying to look at things from all sides. It is getting tougher out there. Right now the big grocery chains are trying to not allow employees health benefits until after they work there for 5 1/2 years. It is happening in the Eugene area. Things are getting bad.

Henry Ruark November 7, 2007 6:30 am (Pacific time)

To all: Meanwhile "corporate campaign contributions" shape every action by our Legislature, and prevent rational reform of our tax system allowing 70-YEAR/OLD "$10 minimum corporate tax". See OCPP for complete and devastating story-details.

Neal Feldman November 7, 2007 3:01 am (Pacific time)

EazyMoney - do you drive a car? I assume so from your statements. Stop driving and use mass transit to commute. Then you will have about $800 a month or more extra each month. It amazes me how much suffering folks will acept and how much they will do without (like health insurance, dental, vision etc) just so they can keep up their addiction to their cars/trucks. Simply amazing. As for child support if you cannot afford to pay for them maybe you should have thought of that before having them. Ah well...

Raven November 6, 2007 8:43 pm (Pacific time)

You are right about a lot easy money. Medical insurance is a must to be successfull, but hard to get these days. And thats only one piece of the puzzle...

EazyMoney November 6, 2007 2:58 pm (Pacific time)

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. ------ I make 12.50 an hour and pay child support. I commute to portland everyday for work. Once the rent and electric phone car insurance and internet are paid. I have just enough left over to keep from starving to death before the next paycheck arrives. (Provided unexpected expenses don't arise like car problems, or health problems.) I wish I could afford health insurance, I could use a good physical, My glasses are probably about 10 years old. and I need at least two crowns and two bridges, (because I had two teeth just pulled because I couldn't afford root canals and couldn't stand the pain any longer.) Maybe I just don't work hard enough? .. 40 hours a week plus 2 hours on the road a day. I could always get another job, but my child support would go up, and It would probably bump me into the next tax bracket, plus more gas... etc.. How many of you out there ever wait until you can't stand it before you go eat something because you know if you eat now there won't be anything left for a couple of days? But you still make about 25,000 a year? Is it just me?

Neal Feldman November 6, 2007 12:03 pm (Pacific time)

The rich get richer and the poor continue to sink and the middle class is shrinking towards the wrong end. All hail the $100 million a year plus benefits CEO salaries. Ah well...

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Cost of Living Rising Faster Than Actual Wages in Oregon

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