5 Cities Where Successful Wage Growth Is Happening

For several years after the 2008 market crash, the economic recovery was seen only in corporate earnings statements and consistent job reports. Family paychecks, meanwhile, didn’t keep pace. Average hourly wages rose at an anemic 2 percent from 2010 to 2014 — and that’s not accounting for inflation. Worse, US workers’ pay had lagged behind other indicators for nearly a decade, the result of bloated executive salaries, global outsourcing of jobs and capital investments in mechanization.

But in the last two years, that dynamic has begun to shift. Unemployment bottomed out at 4.6 percent last year (down from a high of 10 percent in 2009), meaning businesses needed to pay more to recruit and retain employees. Last October, wage growth hit a high of 2.8 percent nationwide.

In which cities has the average worker seen the biggest comparative bump in pay, as measured by higher wages and more work hours? (Hint, three are in blue states, two in red, and not one can claim more than a million residents.) Donald Trump’s 2016 victory in the Electoral College revealed the regional inequities, between the coast and the heartland, that divide our country. As a way to bridge those separations, NationSwell dug into the data to find out what drove better pay in these metro areas, offering five methods for the next administration to consider.

Hot-air balloons soar above Balloon Fiesta Park during the Albuquerque International Balloon Fiesta.

5. Albuquerque, N.M.

Population:559,121
Wage growth in 2016:5.70%
Average weekly pay:$745, up from $703

Statewide, New Mexico’s economy has struggled to make a comeback. At the end of 2015, the Land of Enchantment logged 17,300 fewer non-farm jobs than in pre-recession 2007. But after taking a years-long beating (including more than a doubling in meth overdoses), the state’s biggest city, Albuquerque, is starting to show signs of progress.
Historically, the city has relied on federal spending for a slew of jobs at Sandia National Laboratories, which focuses primarily on weapons, and Kirtland Air Force Base. If President Trump pumps money into defense, the city will likely be a prime beneficiary. But reliance on public dollars “is not a growth industry,” noted Jim Peach, a New Mexico State University economics professor, last year.
To capitalize on government investment, the city is trying to establish the high desert as a hub for science and technology companies. They’re sharing technical discoveries from the national labs (and the state university’s flagship campus) with local small businesses. And they’re also hoping to attract more semiconductor manufacturers near Intel’s chip-making facilities in Rio Rancho, a half-hour drive from downtown. The high-paying jobs in those sectors could power Albuquerque back into full recovery.

The new U.S. Bank Stadium in Minneapolis will host the Super Bowl next year.

4. Minneapolis–St. Paul, Minn.

Population:711,790
Wage growth in 2016:5.97%
Average weekly pay:$998, up from $938
In February 2018, Minneapolis will play host to America’s most watched televised event: the Super Bowl, to be held at U.S. Bank Stadium. (St. Paul will host an accompanying winter carnival, featuring a gigantic ice palace, to draw spectators across the river.) The NFL’s imprimatur is just the latest sign that businesses are increasingly eyeing the Twin Cities for development opportunities. “The number one thing is that people who make decisions for business now have a much more positive view of Minneapolis, and look at us for business expansion,” said Mayor Betsy Hodges, according to the Minneapolis Star Tribune.
To prep for the crowds who’ll be streaming into town to watch football, the city is also shoring up a shopping district in the city center, which has been battered by competition from suburban malls and online retailers. At the moment, a Macy’s department store is the last remaining anchor, but a $50 million revival plan for Nicollet Mall promises to make it a “must-see destination in downtown,” said David Frank, the city’s planning and economic development director.
All that new business means more workers are making more money, thanks to a red-hot 3 percent unemployment rate and a recent change in state law. Last August, a raise in Minnesota’s minimum wage went into effect. At $9.50 an hour for large employers, the hike lands the state near the top of guaranteed minimums. And as debate over a citywide standard of $15 per hour becomes the defining issue of this year’s mayoral campaign — Mayor Hodges recently flip-flopped her position to support the wage bump — compensation seems likely to continue trending upward.

A view of downtown Charlotte, N.C.

3. Charlotte, N.C.

Population:827,097
Wage growth in 2016:7.94%
Average weekly pay:$983, up from $905
If the number of new housing units rising across this Southern city is any indicator, people desperately want to move to Charlotte. At the beginning of last year, construction had begun on more than 12,300 units, and another 13,500 more were planned. The buyers? Foreign-born immigrants who’ve made a home in the New South, young millennials (including Villanova grads) who’ve found plenty of jobs to be had in Charlotte’s banking and advanced manufacturing sectors, and former exurbanites moving back to the city core.
“During the Great Recession, the sprawling developments in the exurbs ground to a halt,” Brian Leary, president of a local development firm, told Curbed. So those people moved closer to the central business district and the expanding light-rail system. “People are craving connectivity to each other and experiences, and those places that can deliver the most experiences in an accessible way can command premiums and value over time.”
Charlotte won that appeal despite the controversy over H.B. 2, the so-called “bathroom bill” that forces trans people to use facilities that match the gender on their birth certificate. The state law, which was drafted in response to a local anti-discrimination ordinance in Charlotte, led to boycotts and unknown quantities of lost revenue. A new governor could overturn the controversial legislation, which in turn could accelerate new business.

2. Nashville–Davidson, Tenn.

Population:654,610
Wage growth in 2016:10.07%
Average weekly pay:$904, up from $812

Another Southern city growing at breakneck speed, Nashville has capitalized on its reputation as a destination for creatives to attract newcomers. Seeking out the city’s robust music scene, tourists continue to stream into Nashville. For 70 months in a row, the hordes of visitors broke records for nightly hotel stays; by the end of the rush last October, Nashville set an all-time record, beating out Houston’s 59-month streak. “We have music, a cool brand, Music City Center and Opryland,” plus two convention centers, Butch Sypridon, CEO of Nashville Convention and Visitors Corp., boasted to The Tennessean.

Now that the city is expanding, officials are moving to the next checklist item they must fulfill to stay on an upward trajectory: luring high-wage employers — an important task, given that Tennessee has no statewide minimum wage. To do so, Nashville is trying to keep as many Vanderbilt alumni in town as possible, while also welcoming foreign immigrants.

The population is there to make Nashville a major economic powerhouse, if the city can attract the right firms. ”If we didn’t have 1,500 people moving to town every month, we won’t have the job growth that we’re having,” said Ralph Schulz, the Nashville Area Chamber of Commerce’s CEO. “Before you had to have the jobs and the population came. That’s not the case anymore. Now it’s workforce, then jobs [follow].” If job openings outpace new residents, expect wages to rocket even higher.

West Loockerman Street in Dover, Del.

1. Dover, Del.

Population:37,522
Wage Growth in 2016:14.05%
Average Weekly Pay:$764, up from $656
Perhaps the most unexpected entrant on the list, the tiny town of Dover, Delaware’s state capital and second largest city, recorded the largest percentage jump in wages in the nation. The payoff is the result of a 10-year comprehensive plan Kent County officials laid out in 2007, which emphasized attracting new companies without losing the area’s farmland and rural charm.
One of the biggest boons to Dover’s economy has been the aviation industry, anchored at Dover Air Force Base. Taking advantage of the military’s need for supplies, the state is building an Air Cargo Ramp that can accommodate large civilian carriers, about the same size as four Boeing 747 planes. The city has also been aided by expansions at several factories, including bra-producer Playtex and food giant Kraft, and a surge in entrepreneurship; in 2015, the dollars loaned to small businesses statewide shot up 156 percent.
On top of that, Dover punches above its weight in attracting some 2 million tourists annually, generating half a billion in revenue countywide. Visitors are drawn by state parks, casinos, NASCAR races and music festivals, like the 80,000-attendee Firefly. “I met a fairly new resident of Kent County a few weeks ago who lives in one of our newer housing developments,” Cindy Small, Kent County’s tourism director, told the local paper. “She mentioned that out of 30 or so homes, 28 of them have been purchased by non-Delawareans. You can bet they were visitors first. They came, they experienced; they relocated.”
It should be noted that Dover’s wages at the beginning of 2016 were, by far, lowest among the top five performers, making it all the easier to notch big gains among its small population. But the town did so even after Delaware upped the state’s minimum wage to $8.25 an hour in June 2015. Even after the change, this booming town’s average pay has continued to rise, perhaps fueled by a still relatively cheap cost of living and an influx of consumer spending.

People, Not Stocks, Are What This Special Nonprofit Invests In

We’ve all heard of investing in companies, but what about investing in individual people? Perhaps, the idea isn’t as far-fetched as it sounds.
After all, that’s the model of the Albuquerque-based nonprofit Prosperity Works. Ona Porter, the president and CEO of the organization told Kevin Robinson-Avilia of the Albuquerque Journal, “We believe in the concept that income gets you by, but assets get you ahead. Asset building creates a safety net for people to leverage more opportunities. It seeds dreams.”
So who’s eligible to enroll? People who earn up to 200 percent of the federal poverty rate — that’s $42,000 for a family of four — can build assets in three ways: personal, financial, and social. (Those earning more than that aren’t disqualified completely; they can still take free classes.)
The financial portion of the program involves free financial literacy and management classes, as well as Individual Development Accounts, or IDAs, through which participants can save money and receive dollar-for-dollar matching funds (up to $4,000) encouraging them to save. Once their goal is met, the participant can tap into the money to pay for education, fund a business, or put a down payment on a home.
Participants also build personal assets through gaining additional education or certifications and develop social assets by learning what resources are available to them in their communities. Porter describes the program as, “a coach-based empowerment model that helps people build financial stability and create opportunities for themselves.”
The unique approach seems to be working. The U.S. Department of Health and Human Services (HHS) provides grants for programs running IDAs — $20 million worth in 2013. According to the HHS, since 1999, 84,000 people have participated in IDAs, saving more than $76 million in income.
One success story is Rick Noland, who used his matching funds to expand his bike rental business. He started The BikeSmith in 2010 with 16 bicycles. Now, he has his own 800-square-foot shop near Old Town Albuquerque and recently hired his first employee. Noland said that the Prosperity Works program was a life-changer. “It forced me to take a comprehensive look at all my finances, put things into perspective and create a new plan for the future. It helped me better control and manage things, and now, several years later, I’ve become essentially debt free.”
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In New Mexico, High Schools That Inspire Would-Be Dropouts

When Principal Tori Stephens-Shauger describes her students at ACE Leadership High School in Albuquerque, N.M., she avoids the labels that have dogged most of these kids for years. “We don’t call them dropouts, troubled kids or ditchers,” says the school’s co-founder. Having grown up in a ranching family and teaching everything from science to special education, Stephens-Shauger understands that there’s a difference between “raising cattle and raising people.” Branding a child doesn’t do any good.

Students who have struggled to make it in other schools find out fast that this principal wants to know them as individuals, not labels. Her blue eyes widen with genuine curiosity when she says, “What I want to know is, what’s their story? And how can we build off what’s amazing about them?”

The reference to building is no coincidence. ACE Leadership, a public charter school, opened in 2010 in partnership with the Associated General Contractors of New Mexico, a commercial construction industry group. ACE’s bold aim is to recruit young people who have either quit high school or are heading in that direction and guide them into promising careers in the fields of architecture, construction and engineering (hence, ACE). The school is more than a job-training program — many such programs exist in other cities, helping to shepherd students from technical schools into the construction-industry workforce.  ACE reimagines the traditional educational model, teaching students core subject matter like math, science and communication by having them work on real-world-inspired projects, rather than in workbooks in a classroom. Students demonstrate what they’ve learned not by taking exams, but by presenting their projects publicly and getting critiques from industry professionals. Teachers learn to be skillful project managers who find the learning opportunities in real-life situations. Upon graduating from ACE, some students begin apprenticeships; others go on to college.

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Most students at ACE are male, Latino and growing up in poverty. Many are bilingual. Nearly all were unsuccessful in traditional school. Tony Monfiletto, the school’s 49-year-old co-founder, doesn’t soft-pedal the challenge of reinventing public education to work better, especially for poor kids. He’s been at it since 1991 as a teacher, principal, parent and education policy analyst, struggling to find innovation in “a system that alienates 40 percent of our kids” (i.e., the dropouts). “What are we doing for the 40 percent who don’t adapt to this [traditional school] model?” he asks.

Five years ago, looking for answers to that question, Monfiletto sat down with the Associated General Contractors of New Mexico, leaders from the construction industry. They told him that they no longer had room on their payroll for young people with only “strong backs and low ambition.” Commercial construction had become increasingly technical work, and yesterday’s trade schools hadn’t kept pace. Contractors, engineering firms and architects now require employees who can solve sophisticated problems, often on multimillion-dollar projects. Monfiletto realized that instead of dropouts who can swing a hammer, “they need[ed] adaptive, dynamic problem-solvers — people who can think.”

So, he set about designing his new school “backward,” by asking first what local industries and disenfranchised kids need from it and then creating a model that served the mutual interests of both. The year ACE Leadership opened, New Mexico had the worst dropout rate in the country, with barely 60 percent of students earning high school diplomas. Leaving school is a costly decision, foreshadowing a lifetime of low wages and missed opportunities. High school dropouts not only earn less, according to the Alliance for Excellent Education, but they are also at higher risk to become teen parents, more likely to commit crimes, are less engaged in civic life and die sooner than those with diplomas. Disproportionately, it’s poor kids of color who fail to finish high school.  To build “ladders of opportunity” for boys and young men of color, President Obama launched an initiative in February called My Brother’s Keeper that involves business partnerships and mentoring for youth.

ACE pulls kids on the margins back into school by offering them hands-on, active learning that has a clear connection to their future. Students don’t sit in classes organized by subject area. Instead, they learn academics and everything else — including a professional work ethic — by designing and building real things. On a typical day at ACE, student teams might be designing an interpretive center for a wildlife sanctuary, developing a marketing pitch for a commercial builder, or advising the city on how to celebrate the legacy of Route 66.

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That’s a departure from most vocational schools, where kids take the usual subjects plus hands-on electives. “Here, it’s not math, science, English and then carpentry. It’s a morning project and an afternoon project,” Monfiletto says, “and all the core academics are embedded into the projects.” Kids get individualized help if they struggle with basics like reading or math, but they don’t spend time on remedial worksheets. For instance, in a project last year called Our Albuquerque, students analyzed a novel that dealt with cultural identity, created topographic maps to reflect the city’s geology and geography, studied poetry and produced spoken word videos that were projected onto their maps as a visual art installation. They presented their work to the mayor’s office to contribute to the city’s redesign efforts.

Industry experts partner with teachers to plan realistic projects and give students constructive feedback. They also act as role models, showing by example how to give a firm handshake or ask for a visitor’s business card. One industry old-timer fills a unique role as “construction coach,” ushering students toward success the way he used to break in newcomers on the job site. “Build your reputation,” a motto displayed on posters (in English and Spanish) and repeated at morning meetings, is a value that kids take seriously. They wrote it.

Tim Kubik, an educational consultant who has helped the ACE team develop its project-based curriculum, says the instructional design is a good fit for students “who need a different kind of education than what most public schools offer. Some kids need to be active. What if you didn’t design a school that assumes kids will be sitting? What if you assume they will be moving?”

Stephens-Shauger, ACE’s principal, brings that start-from-scratch thinking into every aspect of her work, from how she handles discipline to how she hires teachers. Her bottom-line question: “What does this young person need from adults?” That translates to a philosophy of positive youth development, building on kids’ strengths rather than trying to fix what’s broken. It also means that the school provides a 360-degree support system to prevent crises that can interrupt learning. Those challenges — from mental-health issues to family troubles — don’t stop at the school doors. That’s why ACE employs a team of social workers, has lawyers at the ready to navigate immigration issues, makes home visits and runs an on-site health clinic in partnership with the University of New Mexico.

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Finding teachers to work in this environment, Stephens-Shauger says, “is not about years of experience or what’s on their resume. We need to know, are they comfortable here? Are they confident, flexible thinkers?” She observes candidates closely when they come for an initial visit. How do they react when they see power tools in the hands of teenagers? What if students want to bring in their skateboards to test the design of a half-pipe they just built? How do visitors react to the boisterous learning that happens in public? “We find out fast,” she says, “whether people can hang.”

Not content with one innovative school, Monfiletto also directs a professional development organization, the New Mexico Center for School Leadership, which aims to take good ideas to scale. Last fall, he helped to launch ACE’s first sister school: Health Leadership High School leverages similar learning strategies and industry partnerships to prepare students for careers in medicine, nursing, pharmacy and public health. So far, girls outnumber boys in this setting. Plans are in the works to partner with New Mexico’s technology sector for the next school, expected to open in 2015.

ACE, now in its fifth year, enrolls 320 young people, ages 14-24, in programs that run from 9 a.m. to 9 p.m. Students enroll by choice. Day students typically start as ninth-graders and stay for four years. The evening program is more accelerated, geared for young adults who have some high school credits already. This spring, more than 60 students are expected to graduate, which should contribute to New Mexico’s improving graduation rates. Last year, 70 percent of New Mexico students completed high school within four years. Nationally, the high-school graduation rate is holding steady at about 78 percent, a 6.5 percent improvement since 2001, which may put the country on track to meet the 90-percent goal that the White House has set for 2020.

Meanwhile, Monfiletto and the team are working with the state to develop alternative ways of measuring school performance. Standardized tests don’t assess whether students can work on a team, solve complex problems, or apply the trouble-shooting strategies they learn at ACE. “I’ve never heard an employer say, ‘we need to see a kid’s reading score,’ ” Monfiletto says. “They want to know, what kind of kid is this? What can they do?”

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New Mexico Needed Police Officers, So Why Not Put Some Vets To Work?

New Mexico’s police departments were chronically understaffed, but officials thought veterans in need of jobs might offer a solution. The New Mexico Department of Public Safety carefully studied the training regimen for military police, and found that about ten years ago, the military changed its training methods to more closely match those used for civilian police. They decided to create a new program for veterans who’d served in military law enforcement, called Transition With Honor, giving them the chance to qualify as civilian police officers by taking a free one-week course, followed by a test, compared with four months of classes non-veterans must take to join the force.
Mike Sine is the first veteran to take advantage of this program. He served at Kirtland Air Force Base as a military policeman, and enrolled in the program after he left the Air Force. He found a job as a police officer in Bosque Farms, south of Albuquerque, just two months after completing the fast-track program.
Now, he’s spreading the word to other veterans. “Hopefully, I’ll be helping a lot of people on base make the transition,” Sine told Charles D. Brunt of the Albuquerque Journal. “Some of my old coworkers have been contacting me, so hopefully that program will continue to expand.”
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How a Man With Down Syndrome Made This Establishment the “World’s Friendliest Restaurant”

Tim Harris has Down Syndrome. He also owns and operates his own restaurant, Tim’s Place in Albuquerque, which is known around town as the “world’s friendliest restaurant.” It’s easy to see why. “We serve breakfast, lunch and hugs,” Tim said in a video created by AOL (although just last week the restaurant also started serving dinner). “The hugs are the best part.” Every morning, Harris gets up at 5:30 a.m. and literally dances his way to work. Every customer who comes through the doors at Tim’s Place is greeted by the hands-on owner, who introduces himself and pulls them into a big hug. In Harris’s eyes, it’s the hugs that make the place special. “The hugs are way more important than the food,” he says. When he was a kid, Harris told his mom and dad, Keith and Jeannie, that he wanted to run a restaurant. As he got older, his parents recognized that this was a dream that wasn’t going away. Now, Tim’s Place is a family affair. Harris’s dad helped him get the business started, and his older brother Dan is the restaurant’s operations manager. As far as the family knows, Harris is the only person with Down syndrome to run a restaurant in the U.S., but they hope he won’t be the last. “I did not let my disability crush my dreams,” Harris says. “People with disabilities, they can do anything they set their mind to. We’re a gift to the world.”
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