May 13th 2024.
The Bureau of Labor Statistics recently released a report that sheds light on what the minimum wage would look like if it were to keep up with the ever-rising inflation. The findings suggest that if the minimum wage were to be adjusted for inflation in 2024, it would be approximately $13, with the exact amount being $12.85. This is a significant increase from the current federal minimum wage, which has remained stagnant for the past 15 years since its last adjustment in 2009, when it went from $6.55 to $7.25.
Despite the fact that the United States has experienced both economic growth and decline, as well as a global pandemic, the federal minimum wage has remained at $7.25. The Bureau of Labor Statistics further reveals that the purchasing power of $7.25 in July 2009 is equivalent to $10.50 in March 2024. This means that full-time employees earning the current minimum wage are only making a little over $15,000 a year, which is just $20 above the poverty level. If the minimum wage had kept up with inflation, these employees would need to earn $21,870 a year to keep up with the rising cost of goods and services.
While some states still have a minimum wage set at $7.25, others have taken steps to increase it. Currently, 30 states and territories have a minimum wage higher than $7.25. Tukwila, Washington has the highest minimum wage in the country at $20.29 for large employers with over 500 workers. In Washington D.C., the minimum wage is $17 an hour.
There have been discussions at the federal level to raise the minimum wage, but Congress has not made any progress on this issue. In 2021, Democrats proposed increasing the base wage to $15, but the proposal was rejected in the Senate. However, there is a movement in local municipalities to raise wages in specific areas. For example, the King County Council in Seattle is considering a proposal to set a minimum wage of $20.29 an hour. If passed, this legislation would impact county employees, employees of businesses in unincorporated King County, and employees of contracting companies with the county. Small and medium-sized businesses would have more time to increase their wages to the county's standard. Additionally, the minimum wage would be adjusted every year, starting in 2025, based on the rate of inflation.
In San Diego, labor unions are advocating for a $25 hourly minimum wage for service workers. They argue that many low-paid service employees are forced to choose between paying rent or buying food in the city where the current minimum wage is $16.85 an hour. The unions represent thousands of hotel, janitorial, and convention center employees, and are pushing for a 50% increase in the minimum wage.
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