Advocacy for the Poor

On July 24, 2009, the federal minimum wage was increased by 70 cents, to $7.25 and hour from $6.55 per hour. At this amount, a minimum wage worker’s yearly salary will total $15,080. This was the final step in a three-step increase that began in 2007, when the minimum wage was set at $5.15 per hour. While the increase is good news to the estimated 263,000 North Carolinians who will be affected by the change, the fact remains that supporting a family on minimum wage is difficult, if not impossible, today (NC Justice: Support for Working Families and Economic Policy Institute's Minimum Wage Issue Guide).
- According to NC Justice’s calculations, the expenses an average family with children incurs in a year total $41,184. A person would have to average $19.80 per hour to cover these expenses that is more than double the rate of the minimum wage increase.
- The purchasing power of the minimum wage salary has weakened significantly over time. Today, the minimum wage would have to be set over $10 per hour to match the purchasing power of the minimum wage 40 years ago.

The Consequences

North Carolina’s unemployment rate dropped slightly, by .01%, in August, but this decline is deceiving. The drop from 10.9% to 10.8% is actually due to a decrease in the labor force, not the number of people unemployed. In fact, North Carolina’s companies cutting 8,330 jobs in August "North Carolina sheds more jobs but unemployment dips," Triangle Business Journal, September 18, 2009.
People included in the labor force count include adult workers and unemployed adults who are actively seeking employment. Adults who have stopped actively searching for employment are not included in the labor force count; North Carolina’s number has declined because this population has increased.

Taking Action

The local unemployment figures for August 2009 showed unemployment in Winston-Salem down by .1%, from 10.4 in July to 10.3% in August. August jobless figure down, Winston-Salem Journal, September 25, 2009
On September 18th, a job fair hosted by the Winston-Salem Urban League and Home Depot attracted 700 job-seekers. "Hard Times," Winston-Salem Journal, September 19, 2009.
The North Carolina Department of Health and Human Services is changing the way it issues Work First payments. Beginning in October 2009, some Work First participants will receive their assistance checks at the end of each month rather than toward the beginning. The change will affect about 400 Forsyth County families, those who receive benefits for both adults and children "Work First Changes Payout Rules," Winston-Salem Journal, September 17, 2009.
The change will not affect families who only receive benefits for children. There are about 700 families who receive this type of assistance, and they will continue to receive their payments toward the beginning of the month.
North Carolina is changing this policy to allow for better oversight of the Work First program. Recipients of Work First assistance are assigned monthly goals based on their personal plans for self-sufficiency. About 25% of Work First recipients do not meet their monthly goals.

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