Idaho now second-highest in minimum wage jobs

Idaho no longer holds the dubious distinction of the state with the highest share of workers earning the minimum wage.

The Gem State slipped to the No. 2 spot in 2013 as workers making the nationally-mandated minimum fell from 31,000 in 2012 to 29,000, according to the U.S. Bureau of Labor Statistics.

But 7.1 percent of Idaho hourly workers still brought in $7.25 per hour or less last year — that’s well above the national average of 4.3 percent.

In Tennessee, which rose to the top spot, 7.4 percent of hourly workers earn the minimum wage.

Two of every three jobs created in Idaho last year were in the service industry, work that typically pays about $10,000 less than what employees would make in a construction or manufacturing position.

Local economist Will Jenson said there are several reasons why Idaho ranks second. He said about two out of every three jobs created in 2013 were in the service sector and less than 25-percent of people hold college degrees.

“This is another indicator that says education is very important and furthering your education will help you get a better paying job,” said Jenson.

23 states saw the number of minimum wage workers increase while the rest saw decreases.