20+ Crucial Minimum Wage Statistics [2023]: Facts, Predictions, And More - Zippia (2024)

Minimum wage research summary. While each state offers different minimum wages, the fact is that the U.S. federal minimum wage hasn’t changed in some time. All the while, the cost of living continues to rise. With these two factors in mind, we’ve investigated all the essential facts about the U.S. minimum wage, and according to our extensive research:

• There are at least 1.6 million Americans (or 1.9% of all hourly paid workers) who earn less than or equal to the federal minimum wage as of 2023.

• 44.3% of all U.S. workers with earnings at or below the minimum wage are under 25 years old.

• When adjusted for inflation, the federal minimum wage of $1.60 in 1968 would be worth nearly $14 today. That means minimum wage earners in 1968 made 93.1% more than their modern counterparts.

• Since last raised 14 years ago, the federal minimum wage has lost 37.4% of its purchasing power.

• 62% of all Americans support raising the minimum wage to $15 per hour.

For further analysis, we broke down the data in the following ways:
Worker Demographics | Gender | Hourly Workers | State and Industry

General minimum wage statistics

The minimum wage impacts hundreds of thousands of working-class individuals and families across the U.S. To find out more about the general impact of the minimum wage, we’ve gathered all of the most valuable facts and statistics:

• 1.6 million Americans have earnings at or below the federal minimum wage.

  However, given that different states have different minimum wages and costs of living, this isn’t necessarily an accurate reflection of minimum wage workers in all 50 states. The fact is that over a third of the total workforce (52 million Americans) makes less than $15 per hour.

• 247,000 U.S. workers earn exactly the federal minimum wage of $7.25 per hour.

  While that is only 0.15% of the working population, it still represents thousands of families across the U.S. who likely struggle with the cost of living.

• The minimum wage was last raised from $6.55 to $7.25 in 2009.

  Over a three-year period between 2007 and 2009, the federal minimum wage was consistently raised from $5.85 to the $7.25 it is today. This represented a 24% increase in three years. However, within the past 14 years, the wage hasn’t been raised again.

• Working an average of 40 hours per week, someone who earns the minimum wage only makes $15,000 per year.

  That’s far below the average U.S. income of $53,000 per year and also puts these workers below the poverty line in many states. For example, a single person making less than $16,000 is considered below the poverty line in New York State, Virginia, California, and other states.

• 62% of all Americans support raising the minimum wage to $15 per hour.

  However, only 11 states are moving toward this goal, including:

  • California

  • Connecticut

  • Delaware

  • Florida

  • Hawaii

  • Illinois

  • Maryland

  • Massachusetts

  • New Jersey

  • Rhode Island

  • Virginia

Minimum wage statistics by worker demographics

Not all Americans are affected by the minimum wage equally, and certain demographics are far more likely to experience it. Therefore, here are some interesting facts about the demographics of minimum wage workers:

• 55.7% of minimum wage earners are over the age of 25.

  However, younger demographics still earn the minimum wage at much higher rates. For example, 68.9% of all minimum wage earners are under the age of 34, while only 11.4% are over 55.

  Percent of total minimum wage workers by age group

  Age group	% of total minimum wage workers
  16-24	44.3%
  24-34	24.6%
  35-44	10.7%
  45-54	8.9%
  55-64	8.3%
  65+	3.1%

• White Americans make up the vast majority of minimum wage workers, at 832,000.

  Comparably, 226,000 minimum wage workers are Hispanic or Latino, followed by 146,000 being Black and 44,000 being Asian.

  However, it is important to note that White Americans also make up the majority of the American workforce (62.8%), meaning that the sheer numbers don’t indicate which race has the highest percentage of minimum wage workers.

  Number of minimum wage workers by race

  Race	# of minimum wage workers (in thousands)
  White	832K
  Hispanic or Latino	226K
  Black	146K
  Asian	44K

• Hispanic workers are most likely to earn poverty-level wages, with 19.2% of them earning these wages.

  Black Americans also see higher than average rates, with 14.3% of their population earning poverty-level wages. By contrast, only 10.9% of Asian workers and 8.6% of White workers earn poverty-level wages.

  

• 31.3% of Black workers and 30.7% of Hispanic workers would receive a raise if the minimum wage was raised to $15 per hour.

  That’s up to 70% more than the 18.4% of White American workers who would also see a pay raise if the minimum wage was lifted, meaning that Black and Hispanic Americans are disproportionally affected by lower wages.

Minimum wage statistics by gender

The minimum wage can impact each gender differently. We’ve known for a long time that men and women are not equally represented in the workplace, and this is especially true with the minimum wage. For instance, our research shows that:

• 62% of minimum wage earners are women.

  While only 38% are men. Plus, this is despite the fact that the U.S. workforce is almost evenly divided, between 53% being men and 47% being women.

• As of 2021, 1.7% of female workers are minimum wage employees.

  On the other hand, only 1% of male workers are minimum wage employees, which is 70% less than their female counterparts.

  Percent of male and female workers earning minimum wage

  Year	% of male workers who earn minimum wage	% of female workers who earn minimum wage
  2015	2.5%	4.1%
  2016	1.9%	3.4%
  2017	1.7%	2.8%
  2018	1.6%	2.6%
  2019	1.3%	2.6%
  2020	1%	2%
  2021	1%	1.7%

  

• 59% of women would receive a pay raise if the minimum wage was raised to $15 per hour.

  That equates to roughly 19 million women within the U.S. workforce and particularly explains why women are more likely to support raising the minimum wage than men.

• Arkansas, Louisiana, and Pennsylvania have the highest percentage of female minimum wage workers.

  In these states, up to 70% of all minimum wage jobs are held by women. What’s more, is that none of these states have a minimum wage higher than $7.50 per hour.

Minimum wage statistics by hourly workers

The minimum wage mostly applies to hourly workers, as it requires them to be paid at least $7.25 per hour. Therefore, these are some interesting facts about these workers:

• As of 2021, 82.3 million Americans over 16 are paid hourly.

  This represents the majority of American workers, or more specifically, just over 55% of them.

• Around 30% of hourly workers over 18 are classified as “near-minimum-wage” workers.

  That translates to roughly 20.6 million hourly workers in the U.S. who earn an amount close to the minimum wage. Additionally, this also indicates that hourly workers are more likely to earn an annual salary near the minimum wage when compared to salaried workers.

• 28% of minimum wage workers are parents.

  That means over a fourth of all hourly minimum wage earners in the U.S. are parents who are likely struggling to support their children. For instance, the average annual cost of a child is $12,980. However, a single parent on a minimum wage salary can expect to make only $15,000 per year.

Minimum wage statistics by state and industry

The minimum wage can vary a lot from state to state and industry to industry. For instance, some states are implementing minimum wages as high as $15 per hour, while others choose to maintain the federal minimum wage of only $7.25. To understand how each state and industry differ, here are the facts:

Minimum wage by state

State	Current minimum wage (2023)
Alabama	$7.25
Alaska	$10.85
Arizona	$13.85
Arkansas	$11.00
California	$15.50
Colorado	$13.65
Connecticut	$14.00
Delaware	$11.75
D.C.	$16.50
Florida	$10.00
Georgia	$7.25
Hawaii	$12.00
Idaho	$7.25
Illinois	$13.00
Indiana	$7.25
Iowa	$7.25
Kansas	$7.25
Kentucky	$7.25
Louisiana	$7.25
Maine	$13.80
Maryland	$13.25/$12.80
Massachusetts	$15.00
Michigan	$10.10
Minnesota	$10.59/$8.63
Mississippi	$7.25
Missouri	$12.00
Montana	$9.95
Nebraska	$10.50
Nevada	$9.50/$10.50
New Hampshire	$7.25
New Jersey	$14.13
New Mexico	$12.00
New York	$14.20
North Carolina	$7.25
North Dakota	$7.25
Ohio	$10.10
Oklahoma	$7.25
Oregon	$14.75/$12.50
Pennsylvania	$7.25
Rhode Island	$13.00
South Carolina	$7.25
South Dakota	$10.80
Tennessee	$7.25
Texas	$7.25
Utah	$7.25
Vermont	$13.18
Virginia	$12.00
Washington	$15.74
West Virginia	$8.75
Wisconsin	$7.25
Wyoming	$7.25

• Washington has the highest minimum wage, reaching $15.74 per hour as of 2023.

  However, Washington D.C. actually has the highest minimum wage overall, at $16.50 per hour. Regardless, others among the top five highest-paying states include: California ($15.50), Massachusetts ($15.00), Oregon ($14.75) and Connecticut ($14.00).

  See Also

  $21 is the new $15 in minimum wages at more companies

• There are 21 states with minimum wages no higher than $7.25 per hour.

  Nearly half of all U.S. states choose to offer minimum wages that are no higher than the federal minimum wage. These states are listed above, but most commonly are located in the southeast, and central U.S.

• The Leisure and Hospitality industry has the most minimum wage workers, at 715,000.

  For comparison, the next runner-up industry is the Education and Health Services industry, with only 77,000 workers. That means the Leisure and Hospitality industry has over 828% more minimum wage workers than the second-place industry.

  Number of minimum wage workers by industry

  Industry	# of minimum wage workers
  Leisure and Hospitality	715,000
  Education and Health Services	77,000
  Public Sector	68,000
  Wholesale and Retail Trade	65,000
  Other Services	65,000
  Manufacturing	30,000
  Transportation and Utilities	27,000
  Professional and Business Services	25,000
  Construction	9,000
  Financial Activities	8,000
  Information	2,000
  Mining, Quarrying, and Oil and Gas Extraction	1,000

Minimum wage statistics FAQ

1. What percentage of Americans make minimum wage?

   Roughly 1.5% of all Americans make the federal minimum wage. While this might not seem like a lot, it actually equates to just over a million workers around the country. However, this isn’t to say that the number of minimum wage workers hasn’t decreased over time.

   For example, in 2015, around 2.5% of male workers in the U.S. worked for minimum wage, while 4.1% of female workers did the same. That means that just within the past five years, the number of Americans who earn minimum wage has fallen by more than half.

2. What percentage of American workers make less than $15 an hour?

   Over a third of the total workforce make less than $15 per hour. That means there are around 52 million Americans who make less than $15 per hour.

   Of course, these numbers are likely more common in states that have maintained the federal minimum wage of $7.25 per hour. However, a lack of a $15 minimum wage can be especially detrimental for workers living in areas with a high cost of living.

   Unsurprisingly, that’s why 62% of all Americans now support raising the federal minimum wage to at least $15 per hour.

3. When was the minimum wage last raised in the United States?

   The minimum wage was last raised in 2009. Between 2007-2009, the minimum wage saw small, consistent raises. In 2007, the federal minimum wage was $5.85, but by 2009, it was raised from $6.55 to the $7.25 it is today.

   This represented a 24% increase in three years. However, within the past 14 years, the wage hasn’t been raised again.

4. What state has the highest minimum wage?

   California has the highest minimum wage. California’s statewide minimum wage has reached $15 as of 2022. However, the District of Columbia has the highest minimum wage in the U.S., at $15.20.

   Additionally, others among the top five highest-paying states include: Washington ($14.49), Massachusetts ($14.25), Connecticut ($14.00), and Oregon ($13.50).

5. What are the statistics on minimum wage 2022?

   2022 minimum wage statistics focus on how inflation has affected federal minimum wage since 2009. 2009 was the last time the federal minimum wage was raised to $7.25/hour. Since then the purchasing power of that wage has decreased by 37.4%. This is because due to inflation, $7.25 in December 2009 would be the same as $9.96 in December 2022.

6. Why are people fighting for a $15 minimum wage?

   People are fighting for a $15 minimum wage because they deem $7.25 unacceptable at covering the costs of living. Inflation, along side increased costs in healthcare, education, and consumer goods, has made it difficult, or nearly impossible, for many people to live solely on a single job that pays minimum wage.

   People who fight for a $15 minimum wage believe workers have the right to a livable wage that compensates them fairly for their time. They also believe people should be compensated for their working conditions, particularly if they are hazardous or stressful.

Conclusion

Despite rising inflation, the federal minimum wage has remained unchanged for 14 years. Today, states are divided between the nearly half that have kept the federal minimum wage of $7.25 in place versus the others that have chosen to raise their statewide minimum wage.

Regardless, millions of Americans (and especially hourly workers) are still affected by the minimum wage. These workers make only $15,000 per year on average, even though the average child costs over $12,000 per year.

With that in mind, it’s unsurprising that 62% of Americans now support raising the minimum wage to $15 per hour.

References:

1. Statista. “Percentage distribution of workers paid hourly rates with earnings at or below minimum wage in the U.S. 2021, by age.” Accessed on July 11th, 2022.

2. EPI. “The federal minimum wage has been eroded by decades of inaction.” Accessed on July 11th, 2022.

3. Bloomberg. “One in Three U.S. Workers Are Earning Less Than $15 an Hour.” Accessed on July 11th, 2022.

4. BLS. “Characteristics of minimum wage workers, 2020.” Accessed on July 11th, 2022.

5. DOL. “History of Changes to the Minimum Wage Law.” Accessed on July 11th, 2022.

6. GovDocs. “How Many States Have a $15 Minimum Wage?” Accessed on July 11th, 2022.

7. Statista. “Number of workers paid hourly rates with earnings at or below minimum wage in the United States 2021, by race or ethnicity.” Accessed on July 11th, 2022.

8. EPI. “Raising the federal minimum wage to $15 by 2025 would lift the pay of 32 million workers.” Accessed on July 11th, 2022.

9. Pew Research Center. “More women than men earn the federal minimum wage.” Accessed on July 11th, 2022.

10. Statista. “Share of workers paid hourly rates at or below prevailing federal minimum wage in the United States from 1980 to 2021, by gender.” Accessed on July 11th, 2022.

11. Forbes. “The States Where Women Earn The Least.” Accessed on July 11th, 2022.

12. Pew Research Center. “5 facts about the minimum wage.” Accessed on July 11th, 2022.

13. Fatherly. “Single Parents Need to Earn Much, Much More To Actually Make a “Living Wage”.” Accessed on July 11th, 2022.

14. NCSL. “State Minimum Wages.” Accessed on July 11th, 2022.

15. BLS“CPI Inflation Calculator.” Accessed on February 10, 2023.

16. BLS“Characteristics of minimum wage workers, 2021.” Accessed on February 10, 2023.