Indicator: Living Wage
Data and Data Discussion provided by
Communities Count
Sustainability Snapshot:
A living wage guarantees that a person working a 40-hour week makes enough to pay for essentials: housing, food, utilities, transport, health care, and some recreation. A living wage differs from the minimum wage in that the latter is set by law and may fail to cover basics. Workers making less than living wages in the communities where they work are often forced to live at a distance at a cost. Nearly one-fourth of all low-wage earners are immigrants or refugees.
Sustainability Trend:
From 1999 to 2004, the percentage of the King County population receiving less than a living wage increased from 8.4% to 10.4%.
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In Communities Count, a living wage income is regarded as 200% of federal poverty level. The measurement here is the percentage of the population living below 200% of federal poverty level for some measures and below 100% in other measures. For a family of four, the living wage income in 2004 was $38,600.
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In 2004, more than one in five people (22.6%) in King County was living in a household without a living wage income. (Figure 1) From 1999 to 2004, the percentage of the King County population living in poverty increased from 8.4% to 10.4%. The 2004 King County poverty rate (10.4%) is lower than that of Washington State (13.1%) and the U.S. (13.1%).
In 1999, of the four regions, Seattle had the greatest percentage of persons without a living wage income (25.0%), followed by South Region (21.7%), North Region (14.1%), and East Region (10.9%). (Figure 1) In South Region, the percentage of people who did not earn a living wage income increased from 1989 to 1999. This percentage decreased in Seattle and East Region in the same time period. Of the four regions in 1999, Seattle had the greatest percentage of all persons (11.8%) (data on poverty were not available by region for 2004).
Differences in poverty level by race/ethnicity have persisted over the last three decades. In 1999, whites had the lowest poverty level in King County (6.2%) and American Indian/Alaska Natives had the highest (20.6%). (Figure 2)
In 2000, people could report more than one race on the Census for the first time. Therefore, it isn't possible to compare 2000 Census categories with 1990 categories, when respondents could choose only one race. As of publication, ACS data on poverty were not available by race/ethnicity at the county level.
It is possible to track changes in the Hispanic/Latino population across Census years. The poverty rate in this group increased from 14.9% in 1989 to 18.0% in 1999 for the county as a whole.
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Data was contributed by Communities Count (www.communitiescount.org). The original income and poverty data for 1979, 1989 and 1999 are from the 1980, 1990 and 2000 U.S. Census respectively. For these data, the geographic boundaries of King County and the four subregions are defined by aggregating census tracts. Income and poverty data for 2004 are from the 2004 American Community Survey data. These survey data are from a sample and therefore are subject to error. At the time of publication the 2004 data were not available by region, or by race and ethnicity.
The federal poverty level is a threshold income limit that varies according to family size and composition and is adjusted each year. All persons living in a household with a total annual income below that threshold dollar amount are counted in the 100% poverty statistics. A livable wage is considered to be at least twice the poverty level income. The 200% poverty threshold in 2004 for a family of four was $38,600, and for a single person over age 65, $18,100. The same thresholds in 1999 were $34,100 and $16,000, respectively.
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Additional Resources
- Self-Sufficiency Calculator
This Washington State calculator is based on the Self Sufficiency Standard, which measures how much income is needed for a family of a given composition - one person household to large family size - in a given place, to adequately meet its basic needs without any public or private assistance.
This free on-line tool does the following:
* Shows you what hourly wage you must make to support yourself or your family, based on where you live.
* Tells you what you and/or your family should be making based on market value prices for rent, food, health care, transportation, taxes, child care and miscellaneous expenses.
* Allows you to test different work or living options and see how this affects your bottom line.