Fewer Low-Wage Workers in the U.S., But Many Still Earn Below $17/hr

The current federal minimum wage stands at $7.25 per hour, with a tipped minimum of $2.13. In response to ongoing economic pressures, lawmakers have introduced the Raise the Wage Act of 2023, proposing an increase to $17 per hour by 2028. Research indicates a shift in the workforce landscape, as fewer individuals earn below $15 per hour, but a significant number still fall short of the proposed $17 threshold. As states take action, seven have already established minimum wages at or above $15 per hour, with Washington, D.C. leading at $17.50. This trend reflects a growing recognition among employers of the need to offer competitive wages to attract workers. According to labor expert Henderson, this shift has empowered workers to demand better pay, highlighting a changing dynamic in the labor market. Despite these advancements, a concerning statistic reveals that 53% of tipped wage workers earn less than $17 per hour, with many states maintaining the federal minimum wage of $7.25 or lower. These states are often home to a higher concentration of low-wage workers, as reported by Oxfam. The economic challenges are particularly acute for vulnerable populations, including women, who represent 94% of child-care workers, and single parents, 42% of whom earn below the $17 mark. In regions like West Virginia, the struggle for financial stability persists, as a single individual without dependents would need to earn at least $18 per hour to make ends meet. The ongoing discussions around minimum wage reflect broader concerns about living standards and economic equity in the United States.