Tuesday, March 02, 2021

Facts about the Minimum Wage in 2020

The federal minimum wage is $7.25/hour, a level unchanged since 2009.   

Most states now have a minimum wage higher than the federal minimum. 

Among all workers paid by the hour, 1.5 percent earned the minimum or less—1.1 million workers in 2020. 

Among workers paid minimum wage or less, 43 percent are in the prime working age group of 25 to 54. 

Among workers paid the minimum wage or less, 85 percent have a high school diploma or more education. 

Among workers paid the minimum wage or less, 60 percent work in the leisure and hospitality industries. Among workers paid by the hour in the leisure and hospitality industries, 8 percent earn the minimum wage or less. 

Among workers paid the minimum wage or less, 54 percent work in food preparation and serving occupations. Among workers paid by the hour in food preparation and serving occupations, 11 percent earn the minimum wage or less. 

By state, workers who are paid by the hour are most likely to earn minimum wage or less in South Carolina (4.4 percent), Louisiana (3.4 percent), Mississippi (2.8 percent), Virginia (2.7 percent), and Alabama (2.5 percent), 

Source: Bureau of Labor Statistics, Characteristics of Minimum Wage Workers, 2020

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