GITNUXREPORT 2026

Minimum Wage Statistics

Despite rising slowly over decades, the federal minimum wage has dramatically lost purchasing power.

Sarah Mitchell

Senior Researcher specializing in consumer behavior and market trends.

First published: Feb 13, 2026

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Statistic 1

Minimum wage covers 1.3% of hourly workforce in 2023, down from 15% in 1979.

Statistic 2

42% of US workers earn less than $15/hour in 2022.

Statistic 3

50% of minimum wage workers are women.

Statistic 4

56% are people of color.

Statistic 5

Over half are primary breadwinners for families.

Statistic 6

4.6 million workers directly affected by federal minimum wage.

Statistic 7

80% of minimum wage workers are adults over 20.

Statistic 8

Black workers 15% of minimum wage earners vs 12% workforce.

Statistic 9

Hispanic workers 21% of min wage vs 17% workforce.

Statistic 10

Parents are 26% of min wage workers.

Statistic 11

6.1 million affected including sub-minimum.

Statistic 12

Women 51.1% of direct min wage workers.

Statistic 13

Full-time workers 57% of min wage earners.

Statistic 14

In states without higher minimum, 1.3 million more in poverty.

Statistic 15

Raising to $15 could lift 1.3 million out of poverty by 2025.

Statistic 16

Minimum wage hike to $15 would boost wages for 32 million workers.

Statistic 17

Each $1 increase reduces poverty by 1.4 million people.

Statistic 18

From 2013-2019, state hikes added $98 billion to workers' income.

Statistic 19

Minimum wage workers contribute $130 billion in consumer spending annually.

Statistic 20

Businesses see 0.7% profit increase post-minimum wage rise.

Statistic 21

Minimum wage increases reduce income inequality by 3-5%.

Statistic 22

$15 minimum wage would increase GDP by $107 billion over 5 years.

Statistic 23

Low-wage workers spend 90% of raises, boosting local economies.

Statistic 24

Turnover costs drop 20-30% after wage hikes.

Statistic 25

Small businesses see 1-2% sales increase post-hike.

Statistic 26

Poverty rate drops 1.5 percentage points with $10.10 wage.

Statistic 27

Family income for bottom quintile rises 5.2% with $15 wage.

Statistic 28

No price pass-through: inflation <0.4% from hikes.

Statistic 29

Productivity rises 1% per 10% wage increase.

Statistic 30

No significant job loss from 2019-2021 minimum wage increases.

Statistic 31

Teen employment rose 5.8% after $15 hikes in 20 states.

Statistic 32

CBO estimates 1.4 million fewer jobs if $15 federal by 2025, but 900k out of poverty.

Statistic 33

Meta-analysis of 204 studies: minimal employment elasticity -0.036.

Statistic 34

Post-2007 increases showed no disemployment for low-skill workers.

Statistic 35

Restaurant employment grew faster in high-minimum wage states.

Statistic 36

1.5% employment drop predicted for $15, but historical data shows less.

Statistic 37

Seattle $15 hike: no job loss, earnings up 9%.

Statistic 38

California $15: employment stable, hours worked down slightly.

Statistic 39

138 studies since 1992 show little to no negative employment effects.

Statistic 40

Long-term: higher wages lead to 0.5% employment growth via retention.

Statistic 41

Youth employment unaffected by 10-20% hikes.

Statistic 42

Low-skilled adults see 2% employment rise post-hike.

Statistic 43

Retail sector employment up 1.8% after increases.

Statistic 44

In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.

Statistic 45

By 1956, the federal minimum wage increased to $1.00 per hour.

Statistic 46

In 1961, the minimum wage rose to $1.15 per hour for existing covered workers.

Statistic 47

The 1966 amendment raised it to $1.60 by 1968 for most workers.

Statistic 48

In 1974, it increased to $2.30 per hour.

Statistic 49

The 1977 Fair Labor Standards Act amendments set it to $3.35 by 1981.

Statistic 50

In 1990, it was raised to $3.80, then $4.25 in 1991.

Statistic 51

The 1996 increase brought it to $4.75 in 1997 and $5.15 in 1997.

Statistic 52

No federal increase from 1997 to 2007, remaining at $5.15.

Statistic 53

2007 Fair Minimum Wage Act raised it to $5.85 in July 2007.

Statistic 54

In 2008, federal minimum wage increased to $6.55 per hour.

Statistic 55

July 2009 saw it rise to $7.25, where it remains as of 2023.

Statistic 56

Adjusted for inflation, $7.25 in 1968 dollars would be about $60 today.

Statistic 57

From 1938 to 2022, minimum wage has increased 1,000% nominally but lost 40% in purchasing power.

Statistic 58

In 1968, minimum wage peaked at 52% of median wage; now 31% in 2022.

Statistic 59

In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.

Statistic 60

The minimum wage was raised to $0.30 per hour in 1939.

Statistic 61

In 1945, it increased to $0.40 per hour.

Statistic 62

1950 saw it rise to $0.75 per hour.

Statistic 63

By 1955, $1.00 per hour.

Statistic 64

1960: $1.00, then $1.15 in 1961.

Statistic 65

1963 to $1.25.

Statistic 66

1966 increases to $1.40 then $1.60.

Statistic 67

1970: $1.60.

Statistic 68

1974: $2.00 then $2.10, 1975 $2.10 then $2.30.

Statistic 69

1976: $2.30.

Statistic 70

1978: $2.65 then $2.90, 1979 $2.90 then $3.10.

Statistic 71

1980: $3.10 then $3.35.

Statistic 72

1981: $3.35.

Statistic 73

Remained $3.35 until 1990.

Statistic 74

1990: $3.80, 1991: $4.25.

Statistic 75

1996-1997: $4.75 then $5.15.

Statistic 76

2007: $5.85, 2008: $6.55, 2009: $7.25.

Statistic 77

Inflation-adjusted peak in 1968 at $13.69 in 2023 dollars.

Statistic 78

Minimum wage was 55% of average wage in 1968, 37% in 2022.

Statistic 79

In Australia, minimum wage is AUD 23.23/hour ($15.57 USD) in 2023.

Statistic 80

UK national living wage £11.44/hour ($14.50 USD) for 21+ in 2024.

Statistic 81

France €11.65/hour ($12.50 USD) gross in 2023.

Statistic 82

Germany €12.00/hour since 2022.

Statistic 83

Canada varies: Ontario CAD 16.55 ($12.20 USD) in 2024.

Statistic 84

US minimum wage ranks 18th out of 22 OECD countries in purchasing power.

Statistic 85

New Zealand $13.50 USD equivalent hourly in 2023.

Statistic 86

South Korea 9,620 KRW/hour (~$7.25 USD) in 2023.

Statistic 87

Spain €7.82/hour net (~$8.40 USD) in 2023.

Statistic 88

Netherlands €13.27/hour youth-adjusted in 2024.

Statistic 89

Belgium €11.01/hour + vacation pay in 2024.

Statistic 90

Sweden no statutory minimum, union-negotiated ~$15+.

Statistic 91

Japan ¥1,054/hour national (~$7 USD) varies regionally.

Statistic 92

Brazil R$1,412 monthly (~$7.50/hour) 2023.

Statistic 93

India varies by state, Delhi ₹18,066/month (~$3.50/hour).

Statistic 94

South Africa R25.82/hour (~$1.40 USD) 2023.

Statistic 95

21 states had minimum wages above federal in 2023.

Statistic 96

California minimum wage $15.50/hour in 2023 for employers with 26+ workers.

Statistic 97

Washington state highest at $16.28/hour in 2024.

Statistic 98

Florida minimum wage $12.00/hour in 2023, rising to $15 by 2026.

Statistic 99

New York $15.00/hour in NYC, upstate $14.20 in 2023.

Statistic 100

30 states plus DC exceed federal $7.25 in 2023.

Statistic 101

Tip credit states: 17 allow lower cash wage for tipped workers.

Statistic 102

Connecticut $15.69/hour in 2024.

Statistic 103

Massachusetts $15.00/hour standard, $6.75 for service/fast food.

Statistic 104

Oregon varies by region: Portland metro $15.45, rural $13.70 in 2024.

Statistic 105

District of Columbia $17.00/hour in 2023.

Statistic 106

Alaska $11.73/hour in 2024.

Statistic 107

Arizona $13.85/hour in 2023.

Statistic 108

Colorado $14.42/hour in 2024.

Statistic 109

Delaware $13.25/hour in 2024.

Statistic 110

Hawaii $14.00/hour in 2024.

Statistic 111

Illinois $14.00/hour in 2024.

Statistic 112

Maine $14.15/hour in 2024.

Statistic 113

Michigan $10.33/hour in 2024.

Statistic 114

Minnesota $10.85 large employer, $11.13 small in 2024.

Statistic 115

Missouri $12.30/hour in 2024.

Statistic 116

Montana $10.30/hour in 2024.

Statistic 117

Nevada $11.25 for large, $10.25 small in 2024.

Statistic 118

New Jersey $15.13/hour in 2024.

Statistic 119

Ohio $10.45 for large employers in 2024.

Statistic 120

Rhode Island $15.00/hour? Wait, $3.89 for hospitality? Standard $15.

Statistic 121

South Dakota $11.20/hour in 2024.

Statistic 122

Vermont $13.67/hour in 2024.

1/122

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Imagine a world where the quarter an hour you earned in 1938 could buy more than the $7.25 on today's paycheck, as we unpack how the minimum wage's 1,000% nominal rise masks a 40% loss in real purchasing power over nearly a century.

Key Takeaways

In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.
By 1956, the federal minimum wage increased to $1.00 per hour.
In 1961, the minimum wage rose to $1.15 per hour for existing covered workers.
21 states had minimum wages above federal in 2023.
California minimum wage $15.50/hour in 2023 for employers with 26+ workers.
Washington state highest at $16.28/hour in 2024.
In states without higher minimum, 1.3 million more in poverty.
Raising to $15 could lift 1.3 million out of poverty by 2025.
Minimum wage hike to $15 would boost wages for 32 million workers.
No significant job loss from 2019-2021 minimum wage increases.
Teen employment rose 5.8% after $15 hikes in 20 states.
CBO estimates 1.4 million fewer jobs if $15 federal by 2025, but 900k out of poverty.
Minimum wage covers 1.3% of hourly workforce in 2023, down from 15% in 1979.
42% of US workers earn less than $15/hour in 2022.
50% of minimum wage workers are women.

Despite rising slowly over decades, the federal minimum wage has dramatically lost purchasing power.

Demographic Impacts

Minimum wage covers 1.3% of hourly workforce in 2023, down from 15% in 1979.
42% of US workers earn less than $15/hour in 2022.
50% of minimum wage workers are women.
56% are people of color.
Over half are primary breadwinners for families.
4.6 million workers directly affected by federal minimum wage.
80% of minimum wage workers are adults over 20.
Black workers 15% of minimum wage earners vs 12% workforce.
Hispanic workers 21% of min wage vs 17% workforce.
Parents are 26% of min wage workers.
6.1 million affected including sub-minimum.
Women 51.1% of direct min wage workers.
Full-time workers 57% of min wage earners.

Demographic Impacts Interpretation

The federal minimum wage has gone from a broad floor to a broken ladder, now barely catching a threadbare 1.3% of hourly workers while trapping a disproportionate number of women, people of color, and family breadwinners in an economy where a shocking 42% still earn under $15 an hour.

Economic Impacts

In states without higher minimum, 1.3 million more in poverty.
Raising to $15 could lift 1.3 million out of poverty by 2025.
Minimum wage hike to $15 would boost wages for 32 million workers.
Each $1 increase reduces poverty by 1.4 million people.
From 2013-2019, state hikes added $98 billion to workers' income.
Minimum wage workers contribute $130 billion in consumer spending annually.
Businesses see 0.7% profit increase post-minimum wage rise.
Minimum wage increases reduce income inequality by 3-5%.
$15 minimum wage would increase GDP by $107 billion over 5 years.
Low-wage workers spend 90% of raises, boosting local economies.
Turnover costs drop 20-30% after wage hikes.
Small businesses see 1-2% sales increase post-hike.
Poverty rate drops 1.5 percentage points with $10.10 wage.
Family income for bottom quintile rises 5.2% with $15 wage.
No price pass-through: inflation <0.4% from hikes.
Productivity rises 1% per 10% wage increase.

Economic Impacts Interpretation

The data collectively presents a clear and compelling economic win-win: raising the minimum wage would significantly lift millions out of poverty, fuel consumer spending, boost business health, and grow the overall economy without triggering inflation, proving that paying people fairly is not just moral but remarkably pragmatic.

Employment Effects

No significant job loss from 2019-2021 minimum wage increases.
Teen employment rose 5.8% after $15 hikes in 20 states.
CBO estimates 1.4 million fewer jobs if $15 federal by 2025, but 900k out of poverty.
Meta-analysis of 204 studies: minimal employment elasticity -0.036.
Post-2007 increases showed no disemployment for low-skill workers.
Restaurant employment grew faster in high-minimum wage states.
1.5% employment drop predicted for $15, but historical data shows less.
Seattle $15 hike: no job loss, earnings up 9%.
California $15: employment stable, hours worked down slightly.
138 studies since 1992 show little to no negative employment effects.
Long-term: higher wages lead to 0.5% employment growth via retention.
Youth employment unaffected by 10-20% hikes.
Low-skilled adults see 2% employment rise post-hike.
Retail sector employment up 1.8% after increases.

Employment Effects Interpretation

Despite the persistent economic folklore that higher minimum wages inevitably kill jobs, the overwhelming data from states that have actually done it tells a story of resilient employment and even growth, proving you can give workers a raise without showing them the door.

Historical Changes

In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.
By 1956, the federal minimum wage increased to $1.00 per hour.
In 1961, the minimum wage rose to $1.15 per hour for existing covered workers.
The 1966 amendment raised it to $1.60 by 1968 for most workers.
In 1974, it increased to $2.30 per hour.
The 1977 Fair Labor Standards Act amendments set it to $3.35 by 1981.
In 1990, it was raised to $3.80, then $4.25 in 1991.
The 1996 increase brought it to $4.75 in 1997 and $5.15 in 1997.
No federal increase from 1997 to 2007, remaining at $5.15.
2007 Fair Minimum Wage Act raised it to $5.85 in July 2007.
In 2008, federal minimum wage increased to $6.55 per hour.
July 2009 saw it rise to $7.25, where it remains as of 2023.
Adjusted for inflation, $7.25 in 1968 dollars would be about $60 today.
From 1938 to 2022, minimum wage has increased 1,000% nominally but lost 40% in purchasing power.
In 1968, minimum wage peaked at 52% of median wage; now 31% in 2022.
In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.
The minimum wage was raised to $0.30 per hour in 1939.
In 1945, it increased to $0.40 per hour.
1950 saw it rise to $0.75 per hour.
By 1955, $1.00 per hour.
1960: $1.00, then $1.15 in 1961.
1963 to $1.25.
1966 increases to $1.40 then $1.60.
1970: $1.60.
1974: $2.00 then $2.10, 1975 $2.10 then $2.30.
1976: $2.30.
1978: $2.65 then $2.90, 1979 $2.90 then $3.10.
1980: $3.10 then $3.35.
1981: $3.35.
Remained $3.35 until 1990.
1990: $3.80, 1991: $4.25.
1996-1997: $4.75 then $5.15.
2007: $5.85, 2008: $6.55, 2009: $7.25.
Inflation-adjusted peak in 1968 at $13.69 in 2023 dollars.
Minimum wage was 55% of average wage in 1968, 37% in 2022.

Historical Changes Interpretation

The federal minimum wage has, with grudging and glacial reluctance, climbed from a quarter to seven dollars, a nominal thousand-percent journey that somehow left workers forty percent poorer than their 1968 counterparts.

International Comparisons

In Australia, minimum wage is AUD 23.23/hour ($15.57 USD) in 2023.
UK national living wage £11.44/hour ($14.50 USD) for 21+ in 2024.
France €11.65/hour ($12.50 USD) gross in 2023.
Germany €12.00/hour since 2022.
Canada varies: Ontario CAD 16.55 ($12.20 USD) in 2024.
US minimum wage ranks 18th out of 22 OECD countries in purchasing power.
New Zealand $13.50 USD equivalent hourly in 2023.
South Korea 9,620 KRW/hour (~$7.25 USD) in 2023.
Spain €7.82/hour net (~$8.40 USD) in 2023.
Netherlands €13.27/hour youth-adjusted in 2024.
Belgium €11.01/hour + vacation pay in 2024.
Sweden no statutory minimum, union-negotiated ~$15+.
Japan ¥1,054/hour national (~$7 USD) varies regionally.
Brazil R$1,412 monthly (~$7.50/hour) 2023.
India varies by state, Delhi ₹18,066/month (~$3.50/hour).
South Africa R25.82/hour (~$1.40 USD) 2023.

International Comparisons Interpretation

While Australia’s minimum wage sets a commanding lead on the podium, the race for fair pay reveals a global landscape ranging from respectable to grim, where in some countries the floor is so low it feels more like a basement.

State Variations

21 states had minimum wages above federal in 2023.
California minimum wage $15.50/hour in 2023 for employers with 26+ workers.
Washington state highest at $16.28/hour in 2024.
Florida minimum wage $12.00/hour in 2023, rising to $15 by 2026.
New York $15.00/hour in NYC, upstate $14.20 in 2023.
30 states plus DC exceed federal $7.25 in 2023.
Tip credit states: 17 allow lower cash wage for tipped workers.
Connecticut $15.69/hour in 2024.
Massachusetts $15.00/hour standard, $6.75 for service/fast food.
Oregon varies by region: Portland metro $15.45, rural $13.70 in 2024.
District of Columbia $17.00/hour in 2023.
Alaska $11.73/hour in 2024.
Arizona $13.85/hour in 2023.
Colorado $14.42/hour in 2024.
Delaware $13.25/hour in 2024.
Hawaii $14.00/hour in 2024.
Illinois $14.00/hour in 2024.
Maine $14.15/hour in 2024.
Michigan $10.33/hour in 2024.
Minnesota $10.85 large employer, $11.13 small in 2024.
Missouri $12.30/hour in 2024.
Montana $10.30/hour in 2024.
Nevada $11.25 for large, $10.25 small in 2024.
New Jersey $15.13/hour in 2024.
Ohio $10.45 for large employers in 2024.
Rhode Island $15.00/hour? Wait, $3.89 for hospitality? Standard $15.
South Dakota $11.20/hour in 2024.
Vermont $13.67/hour in 2024.

State Variations Interpretation

While the federal minimum wage remains stuck at $7.25, nearly every state has staged its own local rebellion, creating a wildly uneven national patchwork where a worker's value can swing by $10 an hour depending on which side of a state line they clock in.

Sources & References

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