The minimum wage is set to increase in 22 states as of Jan. 1, 2024. This notable development is poised to benefit those earning the minimum wage and ripple through the workforce, as employers are likely to adjust pay scales upwards for workers earning just above the minimum.
This wage hike represents a pivotal moment for workers nationwide, promising broader financial improvements and economic stability.
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Increase of Minimum Wage as a Response to Inflation
AXIOS news reports that this increase in minimum wage is part of a growing trend where more and more states are moving towards a $15 per hour wage. This law includes states like New York, Maryland, and New Mexico, which are on their way to meeting this goal.
This shift is a big win for the Fight for $15 movement that began its push for higher wages 12 years ago.
However, the rising cost of living due to inflation means that the actual value of today's wages is lower. In response, 13 states, such as California, Ohio, and South Dakota, have linked their minimum wages to inflation, which is why they're seeing these increases.
On the other hand, workers in 20 states still earn the federal minimum wage, which was $7.25 an hour since 2009, the last time it went up.
Increasing the minimum wage could help workers who earn low wages, especially now when prices for things like food, rent, and other items are still high because of inflation.
Inflation was at its highest in 40 years in 2022, and although it's starting to slow down, things still cost more than before the pandemic.
In 2021, around one out of every four workers in the U.S. made less than $15 an hour, the Center for American Progress, a progressive research organization, found. Increasing the minimum wage benefits workers and the economy, explains Holly Sklar, Business for a Fair Minimum Wage CEO.
Sklar mentioned in a statement that when workers with low wages get a raise, they spend more, which helps businesses grow. She pointed out that while the federal minimum wage remains stagnant at $7.25 an hour, not keeping up with living costs, state-level wage increases are crucial for workers, businesses, and local communities.
Local Wages Across the States
USA Today revealed that the minimum wage is higher in some places than in the rest of the states because things cost more and prices increase.
Take New York, for example: New York City, Westchester, and Long Island are raising their minimum wage to $16 an hour when the new year starts. The minimum wage in other parts of New York will be $15."
Several states will raise their minimum wages in 2024, mirroring a countrywide trend toward higher earnings. California's minimum wage will climb from $15.50 to $16, a significant advance for workers. Arizona's minimum wage will rise from $13.85 to $14.35, providing a small but necessary boost to workers' salaries.
Colorado's minimum wage is rising from $13.65 to $14.42 to assist workers keep up with the cost of living. Florida's minimum wage will increase gradually from $12 to $13 on September 30. Finally, Illinois' minimum wage will increase from $13 to $14, benefiting many people.
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