Question of the Day: What percent of hourly workers in the U.S. earn the federal minimum wage?
$7.25 per hour is the wage floor for most hourly workers. How common is that minimum wage?
Answer: 1.3% (the smallest percentage since data collection began in 1979)
Photo by Kenny Eliason on Unsplash
Questions:
- How does earning the federal minimum wage of $7.25/hour compare to the living costs in different parts of the US?
- How has the purchasing power of the federal minimum wage changed over time?
- Many states have set their minimum wage higher than the federal rate. Explore the reasons behind this and discuss the impact on workers and businesses.
Behind the numbers (USA Facts):
- As of 2022, 1.02 million hourly workers earned the federal minimum wage or less. That’s 1.3% of all hourly workers, the smallest percentage since data collection began in 1979.
- Since its establishment in 1938 at $0.25 an hour, Congress has increased the federal minimum wage 22 times, with the most recent increase to $7.25 occurring in July 2009. After adjusting for inflation, the federal minimum wage was highest in 1968, equating to $14.01 in 2023 dollars.
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About the Author
Ryan Wood
Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.
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