The Midwestern state Kentucky has added an extra of 3,500 jobs this past month, unemployment rate was reduced to 7.7 percent.
However, statistics have shown that the added jobs are low-paying jobs that have replaced high-paying jobs, thus resulting in not so robust job market.
University of Louisville economist Paul Coomes has stated that the average annual pay in Kentucky is $46,000 while the national average is $55,600. The average pay in Kentucky as remained the same in the past 8 years, and it keeps its levels down together with West Virgnia, which is also noted for its tremendously low paying jobs. Kentucky's average pay has not increased in eight years.
Kentucky has added around 65,000 more jobs during its recovery phase, but has cut around 104,000 jobs.All the added jobs have been in low-paying industries, such as nursing, restaurants and warehousing.
"We've not kept up with the national growth in (the technology) sector, which is sort of your brain part of the economy," Coomes said. "It looks like we're about 16 percent below the national average in pay per job and really not making any gains."
"Raising the minimum wage induces their employers to hire fewer people. It actually causes unemployment," he said. "It's a crude tool to raise the income. It's usually sold as we want to help working families. But very few working families are trying to make a living on the minimum wage."
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