Laserfiche WebLink
<br /> <br />The Effects of a $15 Minimum Wage by 2019 in Santa Clara County and San Jose 4 <br /> <br />SCENARIO A: KEY FINDINGS FOR A $15 MINIMUM WAGE INCREASE IN <br />SAN JOSE – BY 2019 <br />Economic context <br />• When accounting for inflation, median earnings in San Jose were 10.5 percent lower in 2014 <br />compared to their 2007 pre-recession level. Median annual earnings in San Jose are 20.9 <br />percent higher than the state as a whole, but 17.3 percent less than median earnings in <br />Santa Clara County. <br />• Unemployment rates have declined significantly for the state and San Jose. The April 2016 <br />unemployment rate for California was 5.3 percent, down to its 2007 pre-recession rate. <br />Annual unemployment in San Jose had was 4.5 percent in 2015, lower than its pre-recession <br />rate (5.2 percent in 2007).2 <br />Effects on workers – by the end of 2019 <br />• Increasing the minimum wage to $15 would increase earnings for 115,000 workers, or 31.1 <br />percent of the city’s workforce. <br />• Among those getting raises in San Jose, annual pay would increase 17.8 percent, or about <br />$3,000 (in 2014 dollars) on average. These estimates include a ripple effect: some workers <br />who already earn $15 will also receive an increase. <br />• 96 percent of workers who would get increases are over 20 and 56 percent are over 30—with <br />a median age of 32. <br />• The proposed minimum wage increase would disproportionately benefit Latinos, who <br />represent 53 percent of affected workers. <br />• Workers who would get pay increases are less-educated than the overall workforce, but <br />almost half (48 percent) have some college experience or higher. <br />• The median annual earnings of workers who would get raises ($18,100 in 2014 dollars) are <br />36 percent of median earnings for all workers in San Jose ($50,507). Workers getting <br />increases are disproportionately employed in part-time jobs, and are also less likely to have <br />health insurance through their employer. <br />• Workers who would get pay increases disproportionately live in low-income families; on <br />average, they earn close to half of their family’s income. <br />8.A. - Page 18