In the coming year, many Americans can expect higher pay, as revealed by a recent study from the Economic Policy Institute (EPI).
Starting on New Year’s Day, the minimum wage will increase in 22 states, benefiting almost 9.9 million Americans with a pay raise. Overall, these raises will result in an extra $6.95 billion in wages for workers.
Furthermore, on January 1, 38 cities and counties will raise their minimum wages, surpassing the minimum set by their respective states. This will further contribute to the total number of workers experiencing a boost in their pay.
How Minimum Wage Hikes Affect Workers
According to the EPI analysis, more than half of the workers (57.9 percent) receiving an increase on the first day of 2024 will be women.
The EPI also contends that the increases in minimum wage will particularly benefit Black and Hispanic workers.
In states with wage increases, African Americans constitute nine percent of the workforce, yet they represent 11 percent of those affected by the raises. On the other hand, Hispanic workers make up 19.6 percent of the state’s workforces but account for nearly 40 percent of those receiving an increase.
The raises will also help families, as over a quarter (25.8 percent) of the impacted workers are parents, totaling more than 2.5 million individuals. In total, 5.6 million children reside in households where someone will receive a minimum wage increase.
These increases will provide support to workers and families in need. Nearly one in five of those receiving a raise have incomes below the poverty line, and an even higher 47 percent have incomes that are twice as low as the poverty line.
People in California, Hawaii, and New York account for 51 percent of those getting a pay raise, and these are all states with high living costs.
List of State Names
The twenty-two states raising their minimum wage in the upcoming year are:
- Maine
- Vermont
- Washington
- Montana
- Minnesota
- Michigan
- Illinois
- New York
- Rhode Island
- South Dakota
- Ohio
- New Jersey
- Connecticut
- California
- Colorado
- Nebraska
- Missouri
- Maryland
- Delaware
- Arizona
- Alaska
- Hawaii
Hawaii experiences the most significant increase, reaching $14 per hour, a two-dollar raise. This results in an annual wage increase of $1,380 for the average full-time, year-round worker.
On the other hand, Michigan sees the smallest increase, moving from $10.10 per hour to $10.33, leading to an extra $216 per year for the average full-time worker. Moreover, General Motors is going to let go of approximately 1,300 workers in Michigan beginning next year because they’re stopping the production of certain vehicles.
Growing $15 Minimum Wage States
A case currently under consideration by the Michigan Supreme Court might raise the minimum wage for low-wage workers.
In addition to other significant increases, Maryland, New Jersey, and upstate New York will now match or exceed $15 per hour as their minimum wage, joining New York (statewide), California, Connecticut, Massachusetts, and Washington as the only states with minimum wages set at or above $15 per hour.
Seven states, including Delaware, Florida, Hawaii, Illinois, Nebraska, Rhode Island, and Virginia, have enacted laws or passed ballot measures to achieve or surpass a $15 per hour minimum wage.
According to the EPI, more than 17 million workers continue to earn less than $15 per hour, and nearly half of them, 47.8 percent, reside in one of the 20 states where the federal minimum wage remains at $7.25 per hour.
Summary
Next year, minimum wages are set to rise in 22 states, bringing higher pay and an extra $6.95 billion in total wages. The Economic Policy Institute finds these increases will particularly help women, Black, and Hispanic workers, as well as families in need. The push for a $15 minimum wage is gaining momentum with state and local efforts for positive economic change.
