As the clock strikes midnight on January 1, 22 states across the U.S. will see an increase in their minimum wage, benefiting nearly 10 million workers, according to a report by the Economic Policy Institute. These raises, ranging from $216 to $1,380 annually, result from ballot measures, legislation, and inflation adjustments. The adjustments are expected to have a significant impact, potentially lifting workers out of poverty.
The wage increases, affecting a diverse workforce, with women comprising 58% and Black and Hispanic workers representing 49%, coincide with historically low unemployment rates. The Economic Policy Institute predicts that this will mark the “strongest wage growth for low-wage workers in decades.”
Despite this positive development, the report highlights a disparity between wage growth and worker productivity over the last several decades. The federal minimum wage, stagnant at $7.25 since 2009, remains unchanged, with seven states maintaining this rate. The study suggests that if wages had kept pace with production, the minimum wage today would be $19.
Thirty-eight cities and counties, mostly utilizing inflation adjustments, are also raising wages. Boulder County, Colorado, leads with a $2.04 increase, while others, including Seattle, Denver, and Portland, Maine, will see hikes ranging from 20 cents to $1.37.
In September, Florida is set to increase its minimum wage from $11 to $12, adding to the wave of positive developments for low-wage workers. The report underscores the need for broader wage reform and highlights the ongoing disparities in minimum wage policies across the United States.
