Texas’ seasonally adjusted unemployment rate fell to 3.7 percent in October, down from 3.8 percent in September
2018, reaching its lowest level since the state unemployment data series began in January 1976. The Texas
economy added 32,300 seasonally adjusted nonfarm jobs in October. Annual employment growth for Texas was
3.1 percent in October, marking 102 consecutive months of annual growth.
The living wage shown is the hourly rate that an individual must earn to support their family, if they are the sole
provider and are working full-time (2080 hours per year). All values are per adult in a family unless otherwise
noted. The state minimum wage is the same for all individuals, regardless of how many dependents they may
have. The poverty rate is typically quoted as gross annual income. We have converted it to an hourly wage for
the sake of comparison
Of the nearly 6.3 million workers paid hourly rates
in Texas in 2017, 178,000 earned exactly the prevailing
federal minimum wage of $7.25 per hour, while
118,000 earned less, the U.S. Bureau of Labor Statistics
reported today. Assistant Commissioner for
Regional Operations Stanley W. Suchman noted that
the 196,000 workers earning the federal minimum
wage or less made up 6.1 percent of all hourly paid
workers in the state. Nationwide, those earning the
federal minimum or less accounted for 2.3 percent of
the hourly paid workforce. The Texas minimum wage
is equal to the prevailing federal minimum wage.
In 2007, the federal minimum wage began increasing
after holding steady for nearly a decade.
Two additional increases in the federal minimum
wage followed, resulting in higher percentages and
numbers of hourly paid Texas workers earning the
federal minimum wage or less. This rate peaked at
9.5 percent of all hourly paid workers, or 550,000
Texans, in 2010. Both the rate and number have
declined in each of the past 7 years in the state.
According to the Census ACS 1-year survey, the
median household income for Texas was $56,565
or a little over $27 an hour, in 2016, the latest figures
available. Compared to the median US household
income, Texas median household income is $1,052
lower.
In addition, a majority of Texans are not saving
adequately for retirement. One key reason is that
half of working Texans do not have the opportunity
to save at work, which is the best and most common
way individuals build retirement savings.
National studies estimate that between one-half
and two-thirds of Americans are at risk of not having
enough savings to maintain their standard of living
in retirement or cover long-term care costs. It is estimated
that the average Texas private sector worker
has just $32,028 in his or her retirement account(s),
far below the 10 years of annual salary that many
financial advisors recommend.
While Social Security is one important source
of funds for retirement, this benefit will replace
only about 36 percent of prior income on average.
However, one in three Texans over 65 rely on Social
Security as their only source of income.
For most of them the old 50-30-20 rule
just doesn’t quite work.
50 Percent for Needs
Allot half of your net pay for needs.
Needs include any expenses you cannot
forgo in a given month, including:
•Rent or mortgage
•Groceries
•Minimum payments on credit cards
•Auto loan payments
30 Percent for Wants
The 30-percent category might be the
most surprising as a significant portion
of your income is allotted to nonessentials.
Wants include expenses such as:
•Going out to dinner
•Traveling
•Concert tickets
20 Percent for Savings and Debt
Saving money and paying down debt — which
so many personal finance experts emphasize as a
priority — takes the smallest portion of the 50-30-20
budget. The 20-percent category includes:
•Emergency fund savings
•Retirement savings
•Extra payments toward debt
When all is said and done, more jobs is definitely
a good thing. The question remains though, how do
we get to the point that one job is enough to feed
one person.
