Minimum Wage in American Samoa is at a decent level compared to some countries. A person who is a citizen of American Samoa usually receives a salary of about 1,560 USD per month. Salaries vary between 400 USD and 6,980 USD. There are many reasons why the minimum wage in American Samoa should be increased, and the first is its low starting point. The government has set a goal of increasing the wage every three years, but workers are often frustrated when their pay is far below the standard. They are forced to look for alternative jobs and are unable to gain valuable skills. As a result, the minimum wage is low and workers cannot advance their careers.
Low Minimum Wage in American Samoa
The United States General Accountability Office recently published a report highlighting the unemployment rate in American Samoa. The primary industry in American Samoa is tuna fish canning. However, many major employers have closed down or announced huge layoffs, including Starkist. According to the report, the workforce was slightly more than 19,000 in 2008 but has now decreased to just 15,400. In 2016, the US Labor Department clarified what constitutes a domestic worker.
Under the Act, employers must post a notice explaining their rights under the Act. This notice must be posted in a conspicuous place and must contain certain information about the minimum wage. The Department of Labor has created a Minimum Wage Poster specifically for American Samoa employers. It can be viewed with Adobe Acrobat Reader. While the poster was originally designed for other states, American Samoa’s minimum wage was modified to reflect its unique conditions.
In order for an industry to meet the Act’s requirements, it must establish that its employees must make at least this amount. A low minimum wage does not necessarily mean low quality of life. It can prevent low-skilled workers from entering the labor market. To solve this problem, governments can create programs and services to assist the workers in maintaining their dignity and gaining skills. However, wage controls without proper planning will not lead to prosperity in American Samoa.
Increases Scheduled Every Three Years
The next minimum wage hike in American Samoa is scheduled for Sept. 30th. According to federal law, American Samoa must raise its minimum wage by 40 cents per hour every three years, to keep pace with the federal minimum wage. The government is working hard to make sure the basic cost of living is affordable for all residents. The CNMI has also argued that the federal minimum wage hasn’t persuaded U.S. businesses to invest in the region.
The federal minimum wage is $7.25 an hour. American Samoa’s minimum wage was originally set at $4.40 per hour, but Congress changed that in 2007 to a schedule of increases every three years. The original legislation would have raised the minimum wage in American Samoa to the federal level by 2016. However, subsequent legislation has delayed or reduced these increases. The next minimum wage increase in American Samoa is scheduled for September 30, 2021. Even if the state’s minimum wage reaches the federal minimum wage level, it won’t reach the federal level of $7.25 an hour.
A special industry committee has set American Samoa’s minimum wage rates for the past 60 years. This committee was comprised of representatives from business and labor and public interest groups. In its report, the GAO reviewed data from American Samoa and federal sources for 2016-2018. The report highlights the economic challenges in American Samoa and highlights potential benefits for the region. It also provides some insight into the views of stakeholders and other stakeholders on minimum wage increases in the region.
Impact On Workers Ability to Gain Skills
The American Samoa economy is relatively impoverished compared to the rest of the country, but recent efforts to bolster the economy offer a cautionary tale on government planning and unintended consequences. Although the 2007 federal minimum wage was intended to increase wages for islanders, its negative impact on the economy is a stark reminder of the limitations of government policies. To counter this, governments and nonprofit organizations should focus on developing trade programs and assisting workers to gain the skills they need to be more competitive.
One of the challenges American Samoa faces is its small size. It is difficult to export goods to the island without relying on foreign suppliers. Additionally, the lack of skilled labor in the country has led to the development of businesses and industries outside the territory. Aside from the high labor costs and low wages, the economy in American Samoa has benefited from information age activities and an abundance of natural resources.
The recent report by the United States General Accountability Office shows that the minimum wage is hurting employment in American Samoa. The country’s primary industry, tuna fish canning, is in a state of decline. Several major employers such as Starkist announced massive layoffs. The workforce in American Samoa in 2008 was slightly more than 19,000; that number has decreased to 15,400 today.