Pay at the Pump
Tuesday, November 1 2005
Published on AllBusiness.com
At first, there was good news. In our 2005 Salary Survey (October), we reported that salaries among training professionals had risen by about 3 percent over last year's numbers. We also said that was in keeping with raises across the nation. Salary.com, a provider of salary information in Needham, Mass., had reported that salaries rose overall by 3.7 percent this year.
Alas, that was before Katrina and Rita. Gas prices were already rising before the two hurricanes devastated the Gulf Coast and interrupted oil refining, and now the record prices people are paying just to get from here to there is eating up those salary increases.
Salary.com used fuel prices and salary numbers to calculate the impact of fuel prices on workers' commuting costs in 88 cities, and found that American workers are pumping an average of 3.3 percent of their annual salaries into their fuel tanks. And just like the devastation of Hurricane Katrina, which fell hardest on the poor, gas prices affect minimum-wage workers the most.
"The reality is that while every commuter is experiencing a financial hardship with increases in gas prices, those individuals earning the minimum wage of $5.15 per hour are being the hardest hit, with a whopping 11.3 percent of their salary being pumped into their gas tank annually," says Bill Coleman, senior vice president of compensation at Salary.com.
Their calculations assumed an average gas price of $2.81 per gallon and an average vehicle fuel economy of 17.8 miles per gallon. All salary dollar values were based on a 40-hour work week, and assumed a total of 500 commutes per year, to and from work, for 250 work days.
Nationally, commuters in Brownsville, Texas, have been hardest hit by rising gas prices, pumping 4.6 percent of their annual salaries down their gas tanks. Number two is Rochester, N.Y., at 4.5 percent, while tied for third at 4.4 percent are Honolulu and Riverside, Calif. Rounding out the top five is Albany, N.Y., at 4.3 percent. —H.D.
Alas, that was before Katrina and Rita. Gas prices were already rising before the two hurricanes devastated the Gulf Coast and interrupted oil refining, and now the record prices people are paying just to get from here to there is eating up those salary increases.
Salary.com used fuel prices and salary numbers to calculate the impact of fuel prices on workers' commuting costs in 88 cities, and found that American workers are pumping an average of 3.3 percent of their annual salaries into their fuel tanks. And just like the devastation of Hurricane Katrina, which fell hardest on the poor, gas prices affect minimum-wage workers the most.
"The reality is that while every commuter is experiencing a financial hardship with increases in gas prices, those individuals earning the minimum wage of $5.15 per hour are being the hardest hit, with a whopping 11.3 percent of their salary being pumped into their gas tank annually," says Bill Coleman, senior vice president of compensation at Salary.com.
Their calculations assumed an average gas price of $2.81 per gallon and an average vehicle fuel economy of 17.8 miles per gallon. All salary dollar values were based on a 40-hour work week, and assumed a total of 500 commutes per year, to and from work, for 250 work days.
Nationally, commuters in Brownsville, Texas, have been hardest hit by rising gas prices, pumping 4.6 percent of their annual salaries down their gas tanks. Number two is Rochester, N.Y., at 4.5 percent, while tied for third at 4.4 percent are Honolulu and Riverside, Calif. Rounding out the top five is Albany, N.Y., at 4.3 percent. —H.D.