Poverty, Wages, and the Workforce

Building a thriving workforce requires more than just training individuals for in-demand jobs—it requires addressing the systemic challenges that prevent workers from achieving economic stability. In Oregon, 12.6% of the population lives at or below the poverty line. Many households face barriers to self-sufficiency as wages fail to keep pace with the cost of living. The gap between minimum wage and the actual living wage needed to support a family is stark, with a single adult on average needing $24.30 per hour to meet basic needs, far above the current state minimum wage of $14.20.

This reality has profound implications for workforce development. How can programs effectively serve workers if the jobs they lead to do not provide the financial security needed to lift them out of poverty? By analyzing poverty rates and living wage data across Oregon, we can identify opportunities to refine workforce strategies to better align with both the economic needs of workers and the demands of local industries.

• Poverty Rates: In Oregon, counties like Malheur (21%) and Wheeler (19.2%) experience some of the highest poverty levels in the state, far exceeding the state average of 12.6%. In contrast, more affluent counties such as Clackamas report significantly lower rates at just 7.3%.
• Living Wage Gaps: For a single adult, the living wage required to cover basic expenses ranges from $24.30 per hour for a single adult to $73.80 per hour for a single parent with three children. These figures reveal the stark contrast between what workers need and the state minimum wage of $14.20 per hour. Tools like the MIT Living Wage Calculator provide critical insights into living wage requirements for various family compositions across Oregon.
• Expenses and Impact on Families: Household expenses vary widely across the state. For example, average yearly housing costs range from $7,478 in Morrow County to $21,531 in Washington County. A worker supporting themselves alone on full-time minimum-wage work can only afford about 60% of average household costs in Oregon. Households with children face even greater challenges, as childcare costs alone can reach $28,000 annually for two children. These expenses, combined with housing and transportation costs, leave many families struggling to make ends meet, even with two working adults.

These challenges highlight the need for workforce boards to go beyond simply training individuals for existing job openings. It calls for a reevaluation of how we define “successful” employment outcomes, focusing on jobs that provide living wages and long-term stability for workers and their families.

A critical examination reveals that many federally funded job training initiatives, such as those under the Workforce Innovation and Opportunity Act (WIOA), have historically fallen short in elevating participants’ earnings. Studies indicate that despite completing training for in-demand roles, individuals often experience minimal wage increases, insufficient to lift them out of poverty.

To address these issues, the Columbia-Willamette Workforce Collaborative (CWWC) developed the Quality Jobs Framework, aiming to define and promote standards for quality employment. This framework emphasizes the importance of self-sufficiency wages, safe working conditions, predictable hours, comprehensive benefits, accessible hiring practices, and opportunities for training and advancement. By adopting this framework, workforce boards are better equipped to design programs that align with both industry demands and workers’ economic security.

However, transitioning out of below-living wage work is not as simple as providing skills training. For individuals earning low wages, financial constraints create a cycle that is difficult to escape. The time and resources needed to pursue upskilling are often out of reach when wages barely cover basic expenses like rent and food. Without additional support, many workers find it impossible to move into higher-paying, sustainable careers.

The Prosperity 10,000 (P10K) programs, now called Prosperity Programs, exemplify how workforce boards can bridge this gap. This $35 million dollar investment allowed Local Workforce Development Boards (LWDBs) to expand proven career services, to introduce innovative new earn-and-learn opportunities, and to expand vital wraparound services that address the immediate needs of low-income workers. Designed to remove barriers and create pathways to economic mobility, Prosperity Programs have successfully connected many participants with services that make upskilling achievable. These services include grants for transportation, childcare, work uniforms, and exam fees—ensuring workers have the support they need to focus on training and employment.

Take Katy, for example. As a student at the P10K-funded Clackamas Community College’s Workforce Services Department, Katy aspired to become a nurse but faced significant financial hurdles, including exam fees and basic necessities like fuel and work shoes. With support from P10K, Katy was able to complete her nursing training and secure a living-wage position earning $47 an hour. Katy’s success not only improved her financial stability but also contributed to filling a critical workforce need in Oregon’s healthcare industry.

The measurable successes of P10K investments demonstrate the power of targeted workforce programs. The Prosperity Programs have removed barriers for nearly 3,000 participants to date, and are projected to serve over 11,000 individuals and generate nearly $219 million annually in financial benefits to Oregon through increased tax revenue and reduced reliance on social services. These results highlight the transformative potential of combining workforce strategies like the Quality Jobs Framework with barrier-breaking initiatives like Prosperity Programs.

Workforce development is more than training—it’s about ensuring that jobs provide the foundation for economic stability and growth. The successes of Prosperity 10,000 programs and the adoption of tools like the Quality Jobs Framework show that workforce development can be a powerful lever for economic mobility and systemic change. These initiatives underscore the importance of investing in programs that address the full spectrum of challenges faced by low-wage workers.

By redefining “successful” employment outcomes to include living wages, stable working conditions, and long-term career growth, workforce boards can better serve both workers and industries. Programs like P10K demonstrate that when financial barriers are removed, and resources are tailored to meet workers’ needs, the results ripple far beyond individual success—strengthening families, communities, and the state’s economy. The data is clear: when we champion a future where every Oregonian has the opportunity to achieve self-sufficiency, we invest in the prosperity of Oregon as a whole.