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Monday, December 23, 2024

Analysis: WI sees uneven wage increases amid high inflation

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Angela Smith, executive vice president | badgerinstitute.org

Angela Smith, executive vice president | badgerinstitute.org

Wisconsin is experiencing a significant disparity in wage growth across its counties. A county-by-county analysis reveals that while some residents are witnessing substantial wage increases, others are struggling to keep up with rising prices.

In Lafayette County, wages grew by 12% between 2019 and 2023. Conversely, in Waukesha County, inflation-adjusted wages decreased by nearly 2.6% during the same period, leading to financial difficulties for many families.

Statewide, average weekly private-sector wages increased from $972 in 2019 to $1,182 in 2023, representing a nominal growth of 21.6%, according to the Bureau of Labor Statistics. However, high inflation has significantly eroded these gains. The Consumer Price Index (CPI) for urban areas rose by 19.1%, resulting in an inflation-adjusted real wage growth of only about 2.1%.

Real wages have remained almost flat over the past four years when adjusted for inflation, equating today's weekly wages to approximately $993 in 2019 dollars. Wage growth was unevenly distributed across Wisconsin's counties; some saw faster real wage growth than the statewide average, while others lagged behind.

Fifteen counties experienced a decline in real wages during the pandemic. Jackson County faced the most significant decrease, with nominal wages increasing from $858 to $943 per week but decreasing by 7.7% when adjusted for inflation.

Waukesha County also saw a reduction in real wages by about 2.6%. This decline has placed working families under considerable strain. Lindsay Johnson, Executive Director of Waukesha Food Pantry, reported a steady increase in clients since the pandemic began. Visits rose by 68.7%, from 56,268 in 2019 to 94,943 in 2023.

Weekly visits continue to climb in 2024; year-to-date numbers indicate an increase from about 1,825 visits per week in 2023 to approximately 1,916 this year.

“For a lot of our clients, it’s not just food inflation; it’s all inflation,” Johnson said. She noted that rising rent and medical expenses were common issues driving people to seek food assistance.

Johnson emphasized that many working adults are not earning enough to support their families fully and rely on the pantry as part of their food plan. The pantry sees seven or eight new families enrolling daily and has observed an increase in larger families seeking help.

The rising cost of food is also impacting the pantry's ability to meet demand effectively. “Our dollars aren’t going as far as they used to,” Johnson stated. In response to increased need and higher costs, the pantry's food purchases soared from about $95,000 in 2019 to $293,500 in 2023.

Seven counties saw minimal change with less than a 1% increase in inflation-adjusted wages; Rock and Racine counties were among them.

Conversely, thirty-three counties outperformed the state average with more than a 2.1% increase in real wages. Price County saw a rise of 7.5%, Vilas County experienced an increase of 8.8%, and Lafayette County enjoyed a growth rate of 12.3%.

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