NEW STUDY ON WORK ENVIRONMENT IN U.S. INCLUDES
FIRST EVER NATIONAL INDEX TO RANK EACH STATE ON
HOW WORKERS ARE TREATED
Delaware, New Hampshire, Minnesota, Vermont, Iowa Rank Highest;
Louisiana, Texas, Arkansas, Utah, South Carolina Rank Lowest
States That Rate Poorly in Job Opportunities, Job Quality, and Workplace Fairness
Do Not Provide Better Economic Climates
October 25, 2005 (Amherst, MA) – The Work Environment Index (WEI), was released today that rates working environments in all 50 states and Washington, D.C., in terms of average pay, employment opportunities, employee benefits, percentage of low-income workers, fair treatment between genders and ability for employees to unionize. It is the first index to evaluate worker climate as opposed to business climate on a state-by-state basis, and was developed by researchers at Political Economy Research Institute (PERI) at the University of Massachusetts. The WEI is included in PERI's new study, Decent Work in America.
Among the states at the top of the list are Delaware, New Hampshire, Minnesota, Vermont, and Iowa, while Louisiana, Texas, Arkansas, Utah, South Carolina are ranked the lowest. Each state received a ranking on a scale of 1 – 100 in three categories – Job Opportunities, Job Quality and Workplace Fairness – which were then averaged out to determine the state's total score. Delaware, at the top of the list, received a total score of 89 and Louisiana, at the bottom, received a total of 31.
A major finding of the study is a consistent correspondence between the quality of a state's environment for workers and its economic health. States ranking high on the list generally have faster economic growth and lower poverty rates, and conversely, states at the bottom of the list tend to have slower economic growth and higher poverty rates. This suggests that anti-poverty strategies focused on creating decent jobs is viable as well as desirable, a finding that is especially pertinent in the aftermath of Hurricane Katrina, whose impact was devastating on the poor in New Orleans.
Professors James Heintz and Robert Pollin and Dr. Jeanette Wicks-Lim of PERI constructed the Work Environment Index by compiling 2004 data that reflects three components of working life in the U.S. today: Job Opportunities; Job Quality; and Workplace Fairness. This is the first installment of the WEI, which will be updated annually.
In evaluating each category, the index looks at a number of quantitative factors:
- Job Opportunities includes unemployment rates, and rates of "involuntary part-timers" – people who accept part-time jobs only because they can'’t find full-time employment;
- Job Quality includes figures on average wages in each state, adjusted for cost-of-living, and the proportion of workers who receive health and retirement benefits;
- Workplace Fairness measures the proportion of low-income workers, who earn less than 50 percent of the national average wage, after adjusting for cost-of-living differences, and the degree of pay equity among men and women. This category also considers each state's minimum wage, the degree to which collective bargaining is permitted in the public sector, and whether states have "right to work" provisions.
Professor Pollin said, "There are many indexes that give a profile of a state's business climate, but until now, there hasn't been a comparable index of conditions for workers in each state. The WEI shows as that states that have a high WEI ranking provide an economic climate for business that is at least as attractive, if not more attractive, than states that are undesirable for workers."
According to the WEI, the top five states for worker environment are:
1. Delaware (89)
2. New Hampshire (81)
3. Minnesota (80)
4. Vermont (77)
5. Iowa (73)
The worst states for worker environment are:
46 – 48. Mississippi, South Carolina, Utah (tied – 36)
49. Arkansas (34)
50. Texas (33)
51. Louisiana (31)
Established in 1998, PERI is an independent unit at the University of Massachusetts-Amherst, with close ties to the university's Department of Economics. PERI is committed to addressing basic issues of human and ecological well-being through research written for the general public, policy makers, and academic audiences.
