A New Report Finds One Out of Six Construction Workers in Golden State Employed in Informal Economy: Construction is a $152 billion industry in California, employing 895,000 workers. One out of six construction workers in the Golden State, that is 143,900, sank into the informal economy in 2011. Informal employment in the construction industry increased by 400 percent since 1972. Informal construction workers earn about half of what their formal counterparts bring home and their households are three times more likely to live in poverty. This impacts all Californians because of the $774 million informal tax gap.
A $15.37 minimum wage for Los Angeles hotels with 100 or more rooms would affect over 5,000 low-wage hotel workers, including housekeepers, janitors, banquet servers, bellhops and desk clerks. The twenty year trend for hotel growth and rising hotel occupancy and revenue support the finding that the proposed new minimum wage is feasible for the hotel industry in Los Angeles.
Report Summary America has lost ground on the intent declared by Congress when the Fair Labor Standards Act was enacted in 1938, that workers will receive wages sufficient to maintain “the minimum standard of living necessary for health, efficiency, and general well-being.” The federal minimum wage had the greatest value in 1968.
Economic Roundtable mapped the locations of street vendors and brick and mortar retail and restaurants in Los Angeles. What we found was surprising.
We at Economic Roundtable are excited to launch our new blog, Seeds of Change, alongside our redesigned website.