BOISE, Idaho — This article originally appeared in The Idaho Press
Nearly 45% of workers in the Boise metro area — 160,000 — make between $7.25 and $15 an hour, or $15,000 to $31,000 a year, according to 2022 federal wage estimates.
The Boise metro area includes Ada, Canyon, Boise, Gem and Owyhee counties. The data includes just wages and not the value of any benefit packages.
The good news for Idahoans is that the percentage of low-wage workers is shrinking as pay increases in the Treasure Valley. In 2018, 61% of workers in the Boise metropolitan area made between $7.25 and $15 per hour, according to estimates from the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics program (OEWS). Data for 2023 won’t be out until this month.
“Most indications are … I think real incomes are moving in the right direction,” said Steven Peterson, University of Idaho clinical associate professor of economics. “Whether it continues that way, we’ll have to wait to see.”
Good news, but not great. Idaho is still a low-wage state, ranking around 40th among states for per-capita income. The Gem State is one of around 20 states where the minimum wage is the federally mandated $7.25. Neighboring states Montana, Oregon, Washington and Nevada all have higher minimum wages.
“The problem really isn’t in Idaho who gets what — it’s that we all don’t get enough,” Peterson said. “Across the board, we’ve got challenges with regards to compensation and pay. ... It’s not an easy fix.”
Much of the state’s low wages can be traced to the transition from a natural resource extraction economy to a more modern, skill-based economy over the past few decades. Many workers in unskilled jobs have been left behind in this change.
Economic factors have moved conversations about wages — and the cost of housing — to center stage in Idaho. Rents have skyrocketed, and the average home price is out of reach of many in the Treasure Valley.
The average rent for an apartment or condo with one bedroom in Boise is $1,375 per month, according to Zillow, meaning someone would have to earn $49,500 a year in order to make three times the rent, a requirement set forth by many landlords. Households are considered burdened if they spend more than 30% of their income on rent or a mortgage.
For a studio — where the inventory is much lower per Zillow but where the average rent is lower at 1,158 — a person would need to make $41,688.
Idaho also needs to take a look at impediments to productivity, Peterson said, whether that’s a lack of childcare providers, education opportunities and access, as well as infrastructure like roads, highways, telecommunications and airports.
Many aren’t aware of how pervasive low-wage work is, according to an article by the Brookings Institute. People tend to think only students or recent graduates make low salaries. But low-wage work leaves people economically vulnerable.
Other factors affect buying power as well. Salary increases don’t always keep up with inflation, Yogesh Koirala said March 29, standing near the Idaho Women’s Suffrage Commemorative Sculpture near the Capitol.
“I’m happy about what I make,” said Koirala, who talked with the Idaho Press about his salary and raises at a previous engineering job. “But one of the things that I did realize … was that, the way that things are changing in terms of inflation, the salary hike was not proportional.”
His wife, Sami Phuyal, runs her own business: Mental Health Clinic of Idaho. She pays support staff $18-$22 per hour. Raises and performance reviews are important, Phuyal said.
“I kind of compare myself being in somebody else’s shoes too, and try to be mindful as much as we can to make sure that it is a livable wage,” Phuyal said.
And of course, it’s not always about money. Ian Scanlon has been looking for a job, but the most important thing to him is the management and the environment for a position.
“I want to be happy,” Scanlon said.
Editor's note: This article was updated to reflect the type of workers. It is 45% of workers, not full-time workers. The data does not distinguish between full- and part-time work.
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