22 States Set to Increase Minimum Wage in the New Year
Minimum-wage workers in 22 states are set to receive a long-awaited pay increase in the new year. This will affect an estimated 9.9 million workers, with the Economic Policy Institute estimating that the increased wages will give workers an additional $6.95 billion in pay.
The increase in minimum wage will also extend to 38 cities and counties, which will go above state minimums on Jan. 1. However, according to the Department of Labor, 20 states will still maintain the federal minimum wage at $7.25 an hour, which has not changed since 2009.
The low minimum wage has taken a toll on workers, with nearly half of the 17.6 million workers earning less than $15 an hour living in states that continue to adhere to the federal minimum wage. The cost of living has increased significantly, with the Bureau of Labor Statistics consumer price index showing that a dollar in 2023 can only buy roughly 70% of what it could in 2009.
The rising cost of living has forced many Americans to deplete their savings and go deeper into debt. While the U.S. economy seems to be thriving in some areas, those who earn minimum wage have a harder time paying rent and buying essential household goods.
According to EPI data, nearly 58% of workers benefiting from the wage increase are women, while 9% are Black and nearly 38% are Hispanic. Over a quarter of those benefiting are parents, and nearly 20% of the benefitting minimum wage workers currently have incomes below the poverty line.
In response, Senate Democrats have introduced the Raise the Wage Act of 2023, aiming to gradually increase the federal minimum wage to $17 an hour by 2028. If passed, this legislation could significantly improve the standards of living for millions of workers across the country.