Only 1.3% of the hourly workforce now earns the federal minimum of $7.25 per hour. The states have created a patchwork of higher pay floors, while over 40% of U.S. workers still earn less than $15 an hour. This analysis details the wage's shrinking coverage, its economic impacts, and the profound demographic disparities among those earning it.
Key Takeaways
- Minimum wage covers 1.3% of hourly workforce in 2023, down from 15% in 1979.
- In states without higher minimum, 1.3 million more in poverty.
- No significant job loss from 2019-2021 minimum wage increases.
- In 1938, the federal minimum wage was established at $0.25 per hour under the Fair Labor Standards Act.
- In Australia, minimum wage is AUD 23.23/hour ($15.57 USD) in 2023.
- 21 states had minimum wages above federal in 2023.
Minimum wage statistics show steady growth in wages, but many workers still earn near poverty levels.
Related reading
01 · Category
Demographic Impacts13 stats
01
Minimum wage covers 1.3% of hourly workforce in 2023, down from 15% in 1979.
02
42% of US workers earn less than $15/hour in 2022.
03
50% of minimum wage workers are women.
04
56% are people of color.
05
Over half are primary breadwinners for families.
06
4.6 million workers directly affected by federal minimum wage.
07
80% of minimum wage workers are adults over 20.
08
Black workers 15% of minimum wage earners vs 12% workforce.
09
Hispanic workers 21% of min wage vs 17% workforce.
10
Parents are 26% of min wage workers.
11
6.1 million affected including sub-minimum.
12
Women 51.1% of direct min wage workers.
13
Full-time workers 57% of min wage earners.
Interpretation
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.
02 · Category
Economic Impacts16 stats
01
In states without higher minimum, 1.3 million more in poverty.
02
Raising to $15could lift 1.3 million out of poverty by 2025.
03
Minimum wage hike to $15would boost wages for 32 million workers.
04
Each $1increase reduces poverty by 1.4 million people.
05
From 2013-2019, state hikes added $98 billion to workers' income.
06
Minimum wage workers contribute $130 billion in consumer spending annually.
07
Businesses see 0.7% profit increase post-minimum wage rise.
08
Minimum wage increases reduce income inequality by 3-5%.
09
$15minimum wage would increase GDP by $107 billion over 5 years.
10
Low-wage workers spend 90% of raises, boosting local economies.
11
Turnover costs drop 20-30% after wage hikes.
12
Small businesses see 1-2% sales increase post-hike.
13
Poverty rate drops 1.5 percentage points with $10.10wage.
14
Family income for bottom quintile rises 5.2% with $15 wage.
15
No price pass-through: inflation <0.4% from hikes.
16
Productivity rises 1% per 10% wage increase.
Interpretation
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.
03 · Category
Employment Effects14 stats
01
No significant job loss from 2019-2021 minimum wage increases.
02
Teen employment rose 5.8% after $15 hikes in 20 states.
03
CBO estimates 1.4 million fewer jobs if $15 federal by 2025, but 900k out of poverty.
04
Meta-analysis of 204 studies: minimal employment elasticity -0.036.
05
Post-2007 increases showed no disemployment for low-skill workers.
06
Restaurant employment grew faster in high-minimum wage states.
07
1.5% employment drop predicted for $15, but historical data shows less.
08
Seattle $15hike: no job loss, earnings up 9%.
09
California $15: employment stable, hours worked down slightly.
10
138 studies since 1992 show little to no negative employment effects.
11
Long-term: higher wages lead to 0.5% employment growth via retention.
12
Youth employment unaffected by 10-20% hikes.
13
Low-skilled adults see 2% employment rise post-hike.
14
Retail sector employment up 1.8% after increases.
Interpretation
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.
More related reading
04 · Category
Historical Changes30 stats
01
In 1938, the federal minimum wage was established at $0.25per hour under the Fair Labor Standards Act.
02
By 1956, the federal minimum wage increased to $1.00per hour.
03
In 1961, the minimum wage rose to $1.15per hour for existing covered workers.
04
The 1966 amendment raised it to $1.60by 1968 for most workers.
05
In 1974, it increased to $2.30per hour.
06
The 1977 Fair Labor Standards Act amendments set it to $3.35by 1981.
07
In 1990, it was raised to $3.80, then $4.25 in 1991.
08
The 1996 increase brought it to $4.75in 1997 and $5.15 in 1997.
09
No federal increase from 1997 to 2007, remaining at $5.15.
10
2007 Fair Minimum Wage Act raised it to $5.85in July 2007.
11
In 2008, federal minimum wage increased to $6.55per hour.
12
July 2009 saw it rise to $7.25, where it remains as of 2023.
13
Adjusted for inflation, $7.25in 1968 dollars would be about $60 today.
14
From 1938 to 2022, minimum wage has increased 1,000% nominally but lost 40% in purchasing power.
15
In 1968, minimum wage peaked at 52% of median wage; now 31% in 2022.
16
In 1938, the federal minimum wage was established at $0.25per hour under the Fair Labor Standards Act.
17
The minimum wage was raised to $0.30per hour in 1939.
18
In 1945, it increased to $0.40per hour.
19
1950 saw it rise to $0.75per hour.
20
By 1955, $1.00per hour.
21
1960: $1.00, then $1.15 in 1961.
22
1963 to $1.25.
23
1966 increases to $1.40then $1.60.
24
1970: $1.60.
25
1974: $2.00then $2.10, 1975 $2.10 then $2.30.
26
1976: $2.30.
27
1978: $2.65then $2.90, 1979 $2.90 then $3.10.
28
1980: $3.10then $3.35.
29
1981: $3.35.
30
Remained $3.35until 1990.
Interpretation
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.
05 · Category
International Comparisons16 stats
01
In Australia, minimum wage is AUD 23.23/hour ($15.57USD) in 2023.
02
UK national living wage £11.44/hour ($14.50USD) for 21+ in 2024.
03
France €11.65/hour ($12.50USD) gross in 2023.
04
Germany €12.00/hour since 2022.
05
Canada varies: Ontario CAD 16.55 ($12.20USD) in 2024.
06
US minimum wage ranks 18th out of 22 OECD countries in purchasing power.
07
New Zealand $13.50USD equivalent hourly in 2023.
08
South Korea 9,620 KRW/hour (~$7.25USD) in 2023.
09
Spain €7.82/hour net (~$8.40USD) in 2023.
10
Netherlands €13.27/hour youth-adjusted in 2024.
11
Belgium €11.01/hour + vacation pay in 2024.
12
Sweden no statutory minimum, union-negotiated ~$15+.
13
Japan ¥1,054/hour national (~$7USD) varies regionally.
14
Brazil R$1,412monthly (~$7.50/hour) 2023.
15
India varies by state, Delhi ₹18,066/month (~$3.50/hour).
16
South Africa R25.82/hour (~$1.40USD) 2023.
Interpretation
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.
06 · Category
State Variations28 stats
01
21 states had minimum wages above federal in 2023.
02
California minimum wage $15.50/hour in 2023 for employers with 26+ workers.
03
Washington state highest at $16.28/hour in 2024.
04
Florida minimum wage $12.00/hour in 2023, rising to $15 by 2026.
05
New York $15.00/hour in NYC, upstate $14.20 in 2023.
06
30 states plus DC exceed federal $7.25in 2023.
07
Tip credit states: 17 allow lower cash wage for tipped workers.
08
Connecticut $15.69/hour in 2024.
09
Massachusetts $15.00/hour standard, $6.75 for service/fast food.
10
Oregon varies by region: Portland metro $15.45, rural $13.70 in 2024.
11
District of Columbia $17.00/hour in 2023.
12
Alaska $11.73/hour in 2024.
13
Arizona $13.85/hour in 2023.
14
Colorado $14.42/hour in 2024.
15
Delaware $13.25/hour in 2024.
16
Hawaii $14.00/hour in 2024.
17
Illinois $14.00/hour in 2024.
18
Maine $14.15/hour in 2024.
19
Michigan $10.33/hour in 2024.
20
Minnesota $10.85large employer, $11.13 small in 2024.
21
Missouri $12.30/hour in 2024.
22
Montana $10.30/hour in 2024.
23
Nevada $11.25for large, $10.25 small in 2024.
24
New Jersey $15.13/hour in 2024.
25
Ohio $10.45for large employers in 2024.
26
Rhode Island $15.00/hour? Wait, $3.89 for hospitality? Standard $15.
27
South Dakota $11.20/hour in 2024.
28
Vermont $13.67/hour in 2024.
Interpretation
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.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Henrik Dahl. (2026, February 13). Minimum Wage Statistics. Gitnux. https://gitnux.org/minimum-wage-statistics
MLA
Henrik Dahl. "Minimum Wage Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/minimum-wage-statistics.
Chicago
Henrik Dahl. 2026. "Minimum Wage Statistics." Gitnux. https://gitnux.org/minimum-wage-statistics.
Sources & references
51 datasets cited across this report · attribution is report-level