As cost of living rises, wages in Nashville are falling behind, report finds

As the cost of living in Nashville continues to climb, the wages of many local jobs are failing to keep up.

That’s the key takeaway from the annual “Community Needs Evaluation” by Metro Social Services. The findings are in line with those of previous years — which have consistently identified rising costs and stagnant wages as contributors to many of Nashville’s pressing issues.

This year’s study estimates a “living wage” for an adult Nashvillian, with no children, at $52,858 per year. This estimate — which adjusts with number of children — is different from federal poverty measures. The report describes the federal poverty line ($15,650 for one adult with no children) as “outdated and unhelpful in understanding true economic hardship.”

Metro Social Services estimates that 200,000 workers in Davidson County make less than a living wage.

“There are narratives out there that, when they hear low wage, [people] think about few workers in certain industries,” says Abdelghani Barre, the director of strategic planning and research at Metro Social Services. “But when we’re talking about 200,000 workers in Davidson County — that’s a significant number.”

The report exemplifies ways that wages are impacting individuals and families with a variety of statistics, including:

• more than a quarter of Nashville adults have debt in collections;
• more than half of renter households spend 30% or more of income on rent;
• 16% of Nashville workers earning between $25,000 and $50,000 lack health insurance, and;
• 32% of students enrolled in Metro Nashville Public Schools are economically disadvantaged.

Researchers also point out that low wages can have a ripple effect on the broader economy.

“If we have 200,000 workers who are earning less than a living wage, that by definition would mean that there are constraints on their disposable income — the types of spending, shopping that they would do — which then weakens the economy,” says Dr. Garrett Harper, a data analyst with MSS. “So as businesses may struggle in certain ways with that, that has constraints then on a tax base, on business growth, and on their ability to hire and pay at higher wages.”