The Public Cost of Low-Wage Jobs in the New Jersey Construction Industry report by UC Berkeley Center for Labor Research and Education explores the use of safety net programs by construction workers and their families in New Jersey. The study found that 39% of families of construction workers in New Jersey are enrolled in one or more safety net programs at a cost of almost $28 billion per year. Additionally, three times as many construction workers as all workers in New Jersey lack health insurance (31% compared to 10%). The primary strategies to minimize costs and win contracts in the highly competitive construction industry in New Jersey include paying low wages without benefits, misclassifying employees as independent contractors, and paying workers under the table. These practices lead to a "race to the bottom" in the industry, which degrades job quality and leaves many workers unable to support themselves and their families.
