By: Ana-Ioana Ciochia
Final Up to date:
The federal minimal wage has not elevated in over ten years, regardless of steady will increase in the price of residing. How nice is the influence of the stagnant minimal wage on American staff? We collected some fascinating statistics and info about minimal wage and minimal wage staff that might present some solutions.
Key Findings
- The federal minimal wage has been $7.25 since 2009.
- Adjusted for inflation, the minimal wage was highest in 1968.
- The state of Washington has the best minimal wage, at $14.49 per hour.
- In 2021 181,000 Individuals earned minimal wage, whereas 910,000 Individuals earned under minimal wage.
- Most individuals incomes minimal wage are between 20 and 24 years of age.
- 76.2% of minimal wage staff are White.
- 27.2% of those that went to school, however haven’t any diploma earn minimal wage.
- Louisiana is the state with the best proportion of staff who’re paid minimal wage (3.2%).
- 66% of minimum-wage staff are single.
- The leisure and hospitality business employs the best variety of minimum-wage staff.
Minimal Wage within the U.S.
The present Federal minimal has been $7.25 since 2009.[1]✓
✓ Trusted supply
The U.S. Division of Labour
America Division of Labor is chargeable for the administration of federal legal guidelines pertaining to wage and hour rules, reemployment packages, unemployment compensation, occupational security and well being, and periodically financial knowledge.
Minimal Wage Adjusted for Inflation
In 2022, the federal minimal wage continues to be $7.25, the identical as in 2009. The worth of the greenback is falling as costs for every part, from meals to gas, rise. That suggests that staff are experiencing a decline within the buying energy of their earnings.
Adjusted for 2022 {dollars}, the minimal wage was highest in 1968. Although the minimal wage has elevated steadily over the previous century, the buying energy of the minimal wage has been on the decline for the reason that 60s.
Information present that the minimal wage needs to be elevated to $10.01, to compensate for worth will increase and forestall the lack of buying energy of low-income staff.[1]✓
✓ Trusted supply
The U.S. Division of Labour
America Division of Labor is chargeable for the administration of federal legal guidelines pertaining to wage and hour rules, reemployment packages, unemployment compensation, occupational security and well being, and periodically financial knowledge.[2]
Minimal Wages by State
Some states impose their very own minimal wages, above these mandated by the federal authorities.
At $16.01, the District of Columbia has the best minimal wage. Washington, with a $14.49 /hour minimal wage, is the second-highest paying state general. Georgia and Wyoming ($5.15) have the bottom state minimal wages.
Though the minimal wages within the District of Columbia and Washington seem like excessive, each states have larger than common price of residing indices. In 2022, the District of Columbia has an index of 154.5 and Washington has an index of 113.9. Georgia has one of many lowest cost-of-living indices (87.8), whereas Wyoming’s is a bit larger at 91.8.[9]
33 states have a minimal wage above the federal stage, 17 states have a minimal wage under the federal stage (however the federal one nonetheless applies) and 5 states haven’t any minimal wage.[1]✓
✓ Trusted supply
The U.S. Division of Labour
America Division of Labor is chargeable for the administration of federal legal guidelines pertaining to wage and hour rules, reemployment packages, unemployment compensation, occupational security and well being, and periodically financial knowledge.
| State | Price of residing index | Minimal Wage |
|---|---|---|
| Mississippi | 84.9 | $7.25 |
| Oklahoma | 85.7 | $7.25 |
| Kansas | 86.4 | $7.25 |
| Alabama | 87.5 | $7.25 |
| Georgia | 87.8 | $5.15 |
| West Virginia | 88.5 | $8.75 |
| Missouri | 88.6 | $11.15 |
| Indiana | 88.9 | $7.25 |
| Iowa | 89.0 | $7.25 |
| Tennessee | 89.5 | $7.25 |
| Arkansas | 89.9 | $11 |
| Texas | 90.9 | $7.25 |
| Illinois | 91.4 | $12 |
| Nebraska | 91.5 | $9 |
| Michigan | 91.6 | $9.87 |
| Wyoming | 91.8 | $5.15 |
| Ohio | 92.0 | $9.3 |
| Louisiana | 92.8 | $7.25 |
| New Mexico | 93.6 | $11.5 |
| South Dakota | 93.8 | $9.95 |
| South Carolina | 94.2 | $7.25 |
| Wisconsin | 94.8 | $7.25 |
| North Carolina | 95.0 | $7.25 |
| Kentucky | 95.2 | $7.25 |
| North Dakota | 96.7 | $7.25 |
| Minnesota | 96.8 | $10.33 |
| Pennsylvania | 97.9 | $7.25 |
| Puerto Rico | 98.0 | $8.50 |
| Idaho | 99.7 | $7.25 |
| Utah | 102.4 | $7.25 |
| Florida | 103.0 | $10 |
| Virginia | 103.2 | $11 |
| Delaware | 103.9 | $10.5 |
| Montana | 104.8 | $9.2 |
| Colorado | 105.1 | $12.56 |
| Nevada | 105.4 | $10.5 |
| Arizona | 106.9 | $12.8 |
| New Hampshire | 113.2 | $7.25 |
| Rhode Island | 113.8 | $12.25 |
| Washington | 113.9 | $14.49 |
| Connecticut | 116.7 | $14 |
| Vermont | 116.7 | $12.55 |
| Maine | 116.9 | $12.75 |
| New Jersey | 118.6 | $13 |
| Oregon | 120.6 | $13.5 |
| Maryland | 125.1 | $12.5 |
| Alaska | 126.7 | $10.34 |
| New York | 136.8 | $13.2 |
| California | 139.8 | $14 |
| Massachusetts | 147.9 | $14.25 |
| District of Columbia | 154.5 | $16.1 |
| Hawaii | 189.9 | $10.1 |
How Many Folks Earn Minimal Wage or Much less?
910,000 Individuals earned under minimal wage in 2021, whereas 181,000 earned minimal wage. That’s an enchancment in comparison with ten years in the past. In 2011 2,152,000 have been paid under minimal wage, and 1,677,000 have been receiving minimal wage.[3]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Who Makes Minimal Wage?
Minimal Wage Employees by Age
20-24-year-olds characterize 26.9% of all minimal wage staff, in response to the Bureau of Labor Statistics. This could possibly be as a result of a lot of them are nonetheless at school or simply beginning their working lives.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by Gender
63.5% of minimal wage staff are ladies, whereas solely 36.5% of minimal wage staff are males. Which means the variety of minimal wage staff which are ladies is sort of double the variety of males that earn minimal wage. This could possibly be as a result of there are extra ladies than males who work in service jobs that sometimes pay minimal wages.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by Race
76.2% of minimal wage staff are White, whereas solely 4% of Asian staff earn minimal wage.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.[8]
Minimal Wage Employees by Training
Based on the Bureau of Labour Statistics, 34.4% of minimal wage staff are highschool graduates, whereas solely 0.4% of these with an expert diploma are minimal wage staff. Employees who went to school however haven’t any diploma make up 27.2% of minimal wage staff, the next proportion than these with 1 to three years of highschool (10.3%).[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by Marital Standing
66% of the minimal wage staff have by no means been married, whereas 22.8% are married and 11.2% are widowed, divorced, or separated. The youthful staff that make up the biggest share of the minimal wage workforce are much less prone to be married or divorced.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by State
Louisiana is the state with the best proportion of staff who’re paid minimal wage (3.2%). Oregon is the state with the bottom proportion of minimal wage staff, with 0.3%.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
What Work Do Minimal Wage Earners Do?
The next part presents an summary of the sectors and industries with the best variety of minimal wage staff in addition to different frequent traits of minimal wage earners.
Public vs. Personal Sector
93.7% of minimal wage earners work within the personal sector, whereas solely 6.3% of minimal wage earners have a job within the public sector.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by Business
In 2021, the leisure and hospitality business had probably the most important proportion of staff whose hourly salaries have been at or under the federal minimal wage (8%). This business employed over two-thirds of all staff incomes at or under the federal minimal wage, primarily in bars, eating places, and different meals providers. Many of those staff might get suggestions along with their hourly pay.[4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Minimal Wage Employees by Full and Half-Time Standing
52.2% of minimal wage earners work part-time as a substitute of full-time jobs. Once more, this may be influenced by the younger age of these working in part-time jobs whereas they go to highschool. [4]✓
✓ Trusted supply
Bureau of Labor Statistics
The Bureau of Labor Statistics is the first fact-finding physique for the U.S. Federal Statistical System and the U.S. authorities by way of labor economics and statistics.
Which Retail Corporations Make use of The Highest Variety of Low-Wage Employees?
25% of Pizza Hut’s staff earn $10/hour or under. McDonald’s and Subway fall second with 23%. GAP, SpeedWay, and Starbucks have the bottom variety of staff paid $10/hour or under, with percentages falling within the 1% to 4% vary.[5]
Minimal Wages by Nation
Among the many nations listed on the map, Luxemburg has the best hourly fee at $13.4, adopted by Australia, France, and Germany, which fall within the $12.8-$12.2 vary. The nation with the bottom hourly fee is India at $0.35. That exhibits the hourly fee paid in the U.S. ($7.3) is common in comparison with these nations.[6]
Final Up to date: October 22, 2022
The content material on finmasters.com is for academic and informational functions solely and shouldn’t be construed as skilled monetary recommendation. Finmasters isn’t a monetary establishment and doesn’t present any monetary services or products. We try to supply up-to-date data however make no warranties relating to the accuracy of our data.
