New York: 22:00 || London: 03:00 || Mumbai: 06:30 || Singapore: 09:00

Reports US

US stock market daily report (August 27, 2014, Thursday)

August 28, 2014, Thursday, 05:13 GMT | 00:13 EST | 08:43 IST | 11:13 SGT
Contributed by Millennium Traders


According to a report released Tuesday by Working Partnerships USA - a labor-affiliated nonprofit group that works on behalf of temporary employees - black and Hispanic workers make up 41% of private security guards, 72% are janitors and 76% of maintenance workers in Silicon Valley. The report reads, "These twin dynamics -- lack of access to high-end tech jobs, and lack of adequate wages in contracted service jobs - have a profound impact on the communities that are left behind by Silicon Valley's flagship industry."

Government data for Santa Clara County in California along with workforce data released by tech firms, was the source of data for the report. Since tech companies haven't released information on their contracted workforces, the report does not provide details on how many low-wage workers are on their payroll.

The report finds that that 36% of black households and 59% of Hispanic households in the area surrounding Silicon Valley fall below the "self-sufficiency line" - a term used to describe the amount of income that a family requires to meet its basic needs. A raise of $5 per hour to 10,000 contracted workers would be enough to lift a security guard from the median wage to self-sufficiency. The raise would cost less than 0.1% of the $103.7 billion the tech industry made in profits during 2013.

Findings in the Working Partnerships report come at a time when tech companies are under scrutiny for their evident dearth of white-collar diversity. Tech companies are facing increased pressure from activists who say the tech industry should recruit more black and Latino employees. Earlier this year, several tech companies released data showing the lack of black and Latino in their workforces, as well as the prevalence of white and Asian men. Tech industry indicates they plan to improve to bring on more diversified workers, by race.

The portion of U.S. based tech workers with eBay Inc. (EBAY-Nasdaq), Facebook, Inc. (FB-Nasdaq), Google Inc. (GOOG-Nasdaq), LinkedIn Corporation (LNKD-NYSE), Twitter, Inc. (TWTR-NYSE) and Yahoo! Inc. (YHOO-Nasdaq) ranging up to 4% were either black or Hispanic.

Findings in the report are another sign that wealth created by the tech industry, has not trickled down to the low-wage workers who support those companies and live in the surrounding communities. It appears the wealth of the tech industry is held by officers and managers.

Software developers in Silicon Valley earn more than $60 an hour. On the other hand, median wage for workers guarding buildings, cleaning toilets and trimming hedges on tech campuses ranges from $11.39 to $14.17 an hour. At that rate, median wage workers working full-time can't afford rent on an average apartment in Santa Clara County, where Silicon Valley is located.

In Santa Clara County, paid sick days are offered to: 88% of computer and math workers; 41% of building and ground cleaning jobs and 45% of security jobs allow employees to take at least one paid sick day.

Stock Market Forum