Federal Minimum Wage Stuck at $7.25 for Record 14 Years, But Labor Shortage Pushing Pay Higher
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The federal minimum wage has remained $7.25/hr since 2009, the longest period without an increase since 1938.
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Only 141,000 U.S. workers earned minimum wage in 2022, down from 392,000 in 2019, as many states raise their minimums.
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But over 20 states still use the $7.25 federal minimum, affecting millions earning just above that. Proposed increases to $15 or $17 have failed.
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Many employers now pay above minimum wage due to labor competition, with $15 becoming a common baseline.
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Research shows moderate minimum wage increases have little impact on jobs, while large increases could boost employment.