Coloradans to see wages fall next year

10.14.09
By Timoty Jones

With the unemployment rate on the rise across the country it's becoming harder for many people without jobs to pay down their debt and make ends meet each month. But in one western state, even those who are working may find it more difficult to pay their bills.

One potentially good thing about the recession is that it has reduced the cost of living around the country, but with that comes a drop in the minimum wage in Colorado. According to the Associated Press, the state will see its minimum wage fall 4 cents per hour next year because of the fall in the cost of living.

However, because the state's minimum wage will drop from $7.28 to $7.24, it will fall below the federal minimum wage of $7.25 per hour which means Colorado residents will only see a 3 cent decrease in wages.

Because residents voted in an adjustable minimum wage in 2006, the state will be the first since 1938 to see wages fall, according to the wire service.

The wage decline comes after the Bureau of Labor Statistics released the Consumer Price Index for the Denver-Boulder-Greeley area in August, which fell 0.6 percent over the previous 12 months. The report found that the decline came in large part because of falling costs of transportation needs like gasoline.

"Among the eight major expenditure categories, the transportation index had the largest impact on the overall index," found the August report. "Transportation prices declined 10.2 percent from the first half of 2008 to the first half of 2009 due almost entirely to lower motor fuel costs. Prices for motor fuel fell a record-setting 39.3 percent over the period."

More Employment Trends Articles | News Home | Discuss in our Forum

Some in Colorado may see their wages cut