Summary
- • The federal minimum wage in the United States is $7.25 per hour as of 2023
- • 29 states and D.C. have minimum wages above the federal minimum wage
- • California has the highest state minimum wage at $15.50 per hour
- • Washington D.C. has the highest minimum wage in the US at $16.10 per hour
- • 5 states have no state minimum wage law
- • The last federal minimum wage increase was in 2009
- • About 1.1 million workers earned exactly the federal minimum wage in 2020
- • 55.5% of minimum wage workers in 2020 were women
- • 44.1% of minimum wage workers in 2020 were part-time workers
- • The restaurant industry employs the largest share of minimum wage workers
- • The real value of the federal minimum wage peaked in 1968
- • If the minimum wage had kept pace with productivity growth since 1968, it would be over $24 per hour today
- • 22 states automatically increase their minimum wages to keep pace with inflation
- • San Francisco has the highest city minimum wage at $16.99 per hour
- • SeaTac, Washington was the first city to adopt a $15 minimum wage in 2013
Hold on to your wallets, folks, because were diving into the fascinating world of minimum wage statistics! From the eye-popping $15.50 per hour in California to the jaw-dropping $2.13 for tipped workers at the federal level, the landscape of minimum wages is as diverse as it is perplexing. With over 50 cities and counties setting their own rules and regulations, its a minimum wage melee out there. So, grab a pen, crunch some numbers, and lets unravel the intriguing web of whos earning what, where, and why it might just be time for a pay raise.
Economic Impact
- 28 million workers would benefit from raising the federal minimum wage to $15 by 2025
- A $15 federal minimum wage would reduce the number of people in poverty by up to 1.3 million
- Raising the minimum wage to $15 could result in 1.4 million job losses
- A 10% increase in the minimum wage reduces poverty by 2.4%
- Minimum wage increases have little to no effect on employment levels
- Minimum wage increases are associated with reduced employee turnover
- A $15 minimum wage would increase wages for 32 million workers
- Minimum wage increases are associated with reduced suicide rates
- A 10% increase in the minimum wage is associated with a 1.9% decrease in the teen birth rate
Interpretation
The statistical waltz of minimum wage debates continues to mystify and intrigue policymakers and economists alike. With a potential $15 federal minimum wage on the horizon, the stage is set for a grand performance. Will the chorus of 28 million workers singing the praises of a pay raise drown out the lament of the projected 1.4 million job losses backstage? Can the promise of lifting 1.3 million souls out of poverty through this economic pas de deux truly be realized? As the spotlight shines on the complex relationship between wages, employment, and societal outcomes, one thing is clear: the minimum wage debate is not just about numbers—it's a high-stakes dance with real-world consequences.
Federal Minimum Wage
- The federal minimum wage in the United States is $7.25 per hour as of 2023
- The last federal minimum wage increase was in 2009
Interpretation
The stagnant federal minimum wage of $7.25 per hour is a financial time capsule from 2009 that has lost its purchasing power to inflation over the years, resembling a faded and outdated relic in today's bustling economy. As workers struggle to keep up with the rising cost of living, it seems that the minimum wage's growth has hit a decade-long snooze button, leaving many to wonder if it's time for this policy fossil to finally wake up and smell the economic coffee.
Historical Trends
- The real value of the federal minimum wage peaked in 1968
- If the minimum wage had kept pace with productivity growth since 1968, it would be over $24 per hour today
- The federal minimum wage would be $11.69 if it had kept pace with inflation since 1968
- The purchasing power of the federal minimum wage has declined by 17% since 2009
- The first federal minimum wage was set at $0.25 per hour in 1938
- There have been 22 increases in the federal minimum wage since its inception
- The longest period without a federal minimum wage increase was from 1997 to 2007
Interpretation
Ah, the federal minimum wage - a tale of highs, lows, and a whole lot of numbers. From its humble beginnings at 25 cents an hour in 1938 to the peak of its power in 1968, where workers were seemingly rolling in dough that has sadly depreciated over time. If the minimum wage had kept up with productivity, we'd all be pocketing over $24 an hour now, but alas, reality bites at $11.69. With 22 increases under its belt and a decade-long drought before 2007, the minimum wage saga is truly a rollercoaster of economic intrigue. Let's hope for some inflation-fueled justice soon - after all, even the little guy needs a raise every now and then.
International Minimum Wages
- The UK National Living Wage for workers aged 23 and over is £10.42 per hour
- Australia has one of the highest minimum wages in the world at AU$21.38 per hour
- Luxembourg has the highest minimum wage in the EU at €2,387 per month
- 21 out of 27 EU countries have a national minimum wage
- New Zealand's minimum wage is NZ$22.70 per hour
- Germany introduced a national minimum wage for the first time in 2015
- France's minimum wage is €11.27 per hour
- South Korea's minimum wage is 9,620 won per hour
- Japan's minimum wage varies by prefecture, with Tokyo having the highest at 1,072 yen per hour
- Canada's minimum wage varies by province, with Nunavut having the highest at C$16.00 per hour
- Ireland's minimum wage is €11.30 per hour
Interpretation
In a global wage showdown, it seems like countries are engaging in a high-stakes game of "who-can-pay-more" with their workforce. From the UK's "National Living Wage" that makes you feel like royalty at £10.42 per hour to Australia's minimum wage that could make you shout "G'day!" at AU$21.38 per hour, it's clear that some nations are not skimping on worker well-being. Luxembourg is living up to its grand reputation by not only boasting the highest minimum wage in the EU at €2,387 per month but also having one of the highest costs of living. And while some countries like Japan and Germany are still warming up to the concept of a national minimum wage, others like France and New Zealand are leading the charge with rates that make you want to say "oui" and "kia ora" to fair pay. So, whether you're flipping burgers in Canada's Nunavut territory or sipping tea in Ireland, it seems like the wage game is on, and the stakes are rising faster than a barista at a coffee shop during rush hour.
Local Minimum Wages
- San Francisco has the highest city minimum wage at $16.99 per hour
- SeaTac, Washington was the first city to adopt a $15 minimum wage in 2013
- Over 40 localities have adopted minimum wages above their state minimum wage
- Emeryville, California has the highest minimum wage for large employers at $17.68 per hour
- Over 50 cities and counties have adopted their own minimum wage laws
- Santa Fe, New Mexico was one of the first cities to adopt a living wage ordinance in 2003
- Seattle's minimum wage for large employers is $18.69 per hour
- New York City's minimum wage is $15.00 per hour
Interpretation
In a whirlwind of wage numbers across cities, it seems like America is playing a game of minimum wage limbo – how low can you go? San Francisco is seemingly leading the limbo line with a sky-high $16.99 per hour, while others are eagerly trying to catch up. With over 50 cities and counties setting their own wage rules, it's clear that the minimum wage debate is not just a sign of the times, but a sign of the growing divide between state policies and local needs. As cities continue to raise the wage bar, one thing is for certain – in this game of limbo, there's no room for going backwards.
Minimum Wage Demographics
- About 1.1 million workers earned exactly the federal minimum wage in 2020
- 55.5% of minimum wage workers in 2020 were women
- 44.1% of minimum wage workers in 2020 were part-time workers
- The restaurant industry employs the largest share of minimum wage workers
- 16.8% of minimum wage workers are teenagers
- 48.5% of minimum wage workers are aged 16-24
- Black workers make up 17.6% of minimum wage workers
- Hispanic workers make up 23.2% of minimum wage workers
- Workers without a high school diploma are more likely to earn the minimum wage
Interpretation
In a statistical snapshot of the minimum wage workforce, we see a complex tapestry of demographics and industries. With over a million workers earning the federal minimum in 2020, it's clear that low wages continue to be a pressing issue. The fact that a majority of minimum wage earners are women highlights the ongoing gender pay gap, while the prevalence of part-time workers in this category underscores the challenges of unstable employment. The concentration of minimum wage jobs in the restaurant industry hints at systemic issues within a vital sector of our economy. And as teenagers and young adults make up a significant portion of minimum wage workers, it raises questions about the impact on their future opportunities. The overrepresentation of Black and Hispanic workers in this group points to racial disparities that must be addressed. Ultimately, these statistics serve as a stark reminder of the urgent need for fair wages and economic justice in our society.
Policy Proposals
- The Raise the Wage Act of 2021 proposes increasing the federal minimum wage to $15 by 2025
- The Fight for $15 movement began in 2012 with fast-food workers in New York City
- Some proposals suggest regional minimum wages based on local cost of living
- The Harkin-Miller proposal suggested indexing the minimum wage to inflation
- Some economists propose eliminating the tipped minimum wage
Interpretation
The Minimum Wage saga, a rollercoaster of political maneuvers and economic juggling, sees the Raise the Wage Act of 2021 stepping up to the plate, aiming to elevate the federal minimum wage to $15 by 2025. This ambitious leap forward is nothing new for the Fight for $15 movement, which has been sizzling since 2012, when New York City's fast-food workers set the stage. With regional variations and inflation indexation proposals thrown into the mix, the Minimum Wage debate is now a thrilling dance of balancing act versus tip elimination. As we eagerly anticipate the finale of this high-stakes performance, the question remains: will the minimum wage Cinderella finally find her glass slipper, or will the ball end earlier than anticipated?
State Minimum Wages
- 29 states and D.C. have minimum wages above the federal minimum wage
- California has the highest state minimum wage at $15.50 per hour
- Washington D.C. has the highest minimum wage in the US at $16.10 per hour
- 5 states have no state minimum wage law
- 22 states automatically increase their minimum wages to keep pace with inflation
Interpretation
In the colorful patchwork quilt of minimum wage laws across the United States, some states are clearly leading the charge towards fairer pay for workers. With California and Washington D.C. proudly waving their banners of $15.50 and $16.10 per hour respectively, it seems that the golden state and the nation's capital have some silver linings for their workforce. Meanwhile, a smattering of states seems content to drag their feet in the minimum wage race, with five states opting to stay out of the game altogether. But fear not, as 22 states are diligently playing catch-up with inflation, ensuring that the minimum wage tug-of-war continues to provide plenty of thrills and spills.
Tipped Minimum Wage
- The federal tipped minimum wage is $2.13 per hour
- 7 states require tipped workers to be paid the full state minimum wage
- 26 states and D.C. have a tipped minimum wage higher than the federal tipped minimum
- Maine's tipped minimum wage is 50% of the regular minimum wage
- California requires tipped workers to be paid the full state minimum wage
- The federal tipped minimum wage has not increased since 1991
- 8 states have eliminated the tipped minimum wage
- Tipped workers in D.C. will receive the full minimum wage by 2027
Interpretation
These minimum wage statistics paint a perplexing picture of the disparities faced by tipped workers across the United States. While some states are stepping up to ensure fair compensation by requiring full state minimum wage for tipped workers or even eliminating the tipped minimum wage altogether, others seem stuck in a time warp with the federal tipped minimum wage stagnant since 1991. Maine's innovative approach of setting the tipped minimum wage at 50% of the regular minimum wage is as quirky as it is compelling. It seems that the road to fair wages for tipped workers is a winding one, with D.C. leading the charge towards progress, albeit at a leisurely pace with the full minimum wage for tipped workers scheduled for 2027.
