Invited Testimony Texas House of Representatives Committee on Economic and Small Business Development Friday, March 9, 2017 Presented by Garrett C. Groves Center for Public Policy Priorities Garrett C. Groves | Economic Opportunity Program Director | [email protected]| 512.823.2879 | 7020 Easy Wind Drive, Suite 200, Austin, TX 78752 REBUILDING THE MIDDLE CLASS
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17 03 09 Invited Testimony House Economic and Small Business … · High-Skill Occupations Traditional Middle -Skill Occupations Low-Skill Occupations 61% 43% 13% 25% l 18% SOURCE:
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Invited TestimonyTexas House of Representatives
Committee on Economic and Small Business DevelopmentFriday, March 9, 2017
Presented by Garrett C. GrovesCenter for Public Policy Priorities
SOURCE: The original chart is from “The Vanishing Middle: Job Polarization and Workers’ Response to the Decline in Middle-Skill Jobs,” by Didem Tuzemen and Jonathan Willis, Federal Reserve Bank of Kansas City, 2013. The original chart has been updated to begin in 1979 and end in September 2016. Data were provided by Didem Tuzeman.
THE SHRINKING MIDDLEJob Polarization in the United States
39%
Low Wage Jobs and the Shrinking Middle Class in Texas
•NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. •SOURCES: 1980 Census; 2014 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015.
Percent Change in Share of Jobs by Wage Quartile in Texas 1979-2014
Over $26.40$16.61 to $26.40$10.61 to $16.60Under $10.60
The Shrinking Middle Class in Texas is Part of National Trend
•NOTES: Calculations include workers over age 15 with positive wages and exclude the self-employed. Quartiles based on the Texas and US wage distributions from the 1980 decennial census, which refers to 1979 wages. •SOURCES: 1980 Census; 2014 ACS; “Employment Growth and Labor Market Polarization,” Chapter 7, Ten-Gallon Economy: Sizing Up Economic Growth in Texas by Pia M. Orrenius Jesús Cañas and Michael Weiss, 2015.
Texas Educational Attainment of Civilian WorkforceAge 25 and Older
High School or below Some college and AA Bachelor's and above
Source: Current Population Survey
“Opportunity Occupations” Exist in Every Local Economy
NOTE: Opportunity occupations are those that pay at least a median wage for that region and require less than a bachelor’s degree.SOURCE: Federal Reserve Bank of Dallas’ analysis of data from “Identifying Opportunity Occupations in the Nation’s Largest Metropolitan Economies,” by Keith Wardrip, Kyle Fee, Lisa Nelson and Stuart Andreason, Federal Reserve Banks of Atlanta, Cleveland and Philadelphia, Sept. 9, 2015.
Ten Most Dominant Opportunity OccupationsIn Dallas – Fort Worth MSA in 2016
SOURCE: Center for Public Policy Priorities’ analysis of data from “Identifying Opportunity Occupations in the Nation’s Largest Metropolitan Economies,” by Keith Wardrip, Kyle Fee, Lisa Nelson and Stuart Andreason, Federal Reserve Bank of Cleveland, Sept. 9, 2015.
Watch Repairers, 170
Adhesive Bonding Machine Operators and
Tenders, 1,670
Transit and Railroad Police, 280
Loan Interviewers and Clerks, 13,000
Reservation and Transportation Ticket
Agents and Travel Clerks, 8,330
Insurance Appraisers, Auto Damage, 870
Occupational Therapy Assistants, 1,750
Radio, Cellular, and Tower Equipment Installers and
Repairers, 720
Avionics Technicians, 920
Aerospace Engineering and Operations Technicians, 5801
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4
4.5
$15 $20 $25 $30 $35 $40
Loca
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Quo
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Median Hourly WageHigh school diploma with on-the-job training Postsecondary non-degree award Associate's degree
Ten Most Dominant Opportunity OccupationsIn Houston MSA in 2016
SOURCE: Center for Public Policy Priorities’ analysis of data from “Identifying Opportunity Occupations in the Nation’s Largest Metropolitan Economies,” by Keith Wardrip, Kyle Fee, Lisa Nelson and Stuart Andreason, Federal Reserve Bank of Cleveland, Sept. 9, 2015.
Rotary Drill Operators, Oil and Gas, 4320
Service Unit Operators, Oil, Gas, and Mining, 7880
Pump Operators, Except Wellhead Pumpers, 1280
Roustabouts, Oil and Gas, 7330
Petroleum Pump System Operators, Refinery
Operators, and Gaugers, 4530
Chemical Plant and System Operators, 3580
Chemical Equipment Operators and Tenders,
6130
Occupational Health and Safety Technicians, 1150
Wind Turbine Service Technicians, 750
Geological and Petroleum Technicians, 3840
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15
$15 $17 $19 $21 $23 $25 $27 $29 $31 $33 $35
Loca
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Quo
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Median Hourly WageLess than high school High school diploma or equivalentSome college, no degree Associate's degree
Ten Most Dominant Opportunity OccupationsIn Austin-Round Rock MSA in 2016
SOURCE: Center for Public Policy Priorities’ analysis of data from “Identifying Opportunity Occupations in the Nation’s Largest Metropolitan Economies,” by Keith Wardrip, Kyle Fee, Lisa Nelson and Stuart Andreason, Federal Reserve Bank of Cleveland, Sept. 9, 2015.
Surveying and Mapping Technicians, 1,000
Eligibility Interviewers, Government Programs,
1,720
Glaziers, 650
Insurance Appraisers, Auto Damage, 350
Computer User Support Specialists, 7,710
Electrical and Electronics Engineering Technicians,
4,510
Civil Engineering Technicians, 1,410
Computer Network Support Specialists, 2,690
Web Developers, 1,870
Environmental Science and Protection
Technicians, Including Health, 510
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$15 $17 $19 $21 $23 $25 $27 $29 $31 $33
Loca
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Quo
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Median Hourly Wage
HS Diploma with Moderate On-The-Job Training ApprenticeshipPostsecondary non-degree award Associate's degree