Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Minimum wage in the U.S. - statistics & facts
Minimum wage is the lowest hourly rate that employers are legally required to pay their employees. In the United States, the federal minimum wage is 7.25 U.S. dollars per hour which, when adjusted for inflation, is approximately 40 percent lower than what it was in 1970. As of 2025, the District of Columbia had the highest minimum wage in the country, at 1.5 U.S. dollars per hour. 13 states remain situated at the prevailing federal minimum. Georgia and Wyoming had the lowest minimum wages that year, with both state minimum wages at 5.15 U.S. dollars per hour. Exceptions to the minimum wage are sometimes made to small businesses, allowing states to have two different minimum wage rates.
Despite monthly wages climbing, they continued to lag behind inflation, leaving many Americans vulnerable to rising costs. As of 2024, the hourly wage required to afford a two-bedroom apartment was considerably more than the average minimum wage of every U.S. state, spanning from 18 U.S. dollars in West Virginia and North Dakota, up to 47 U.S. dollars in California. In the United States, the monthly average rent in 2023 was estimated to be 1,700 U.S. dollars, which is more than double what it was in 2000. The rising cost of living has had major implications across the country, with more than one third of U.S. consumers struggling to make ends meet.
About 386,000 workers between the ages of 16 and 24 years old were earning hourly rates at the federal minimum wage or less in 2023, making up the majority of workers paid at this rate. Comparatively, there were approximately 112,000 workers aged between 35 and 44 earning the same hourly rates. In the same year, the number of women being paid below the federal minimum wage was nearly twice that of men. The share of employees earning hourly wages at or below the minimum can also vary greatly depending on their level of education.
Cost of living
While minimum wage itself has not fallen, it no longer provides the same support it once did. It has been estimated that, if the minimum wage were to have grown with productivity, it would have reached 22.88 U.S. dollars in 2021. Such disparities are particularly present within major U.S. cities. For example, the minimum annual income required for an individual to attain a comfortable life in New York City, New York was 105,742 U.S. dollars for renters, and 151,390 U.S. dollars for homeowners. Despite the city鈥檚 minimum wage being more than double the federal rate in 2025, full-time workers earning minimum wage would have made around 30,000 U.S. dollars that year.Despite monthly wages climbing, they continued to lag behind inflation, leaving many Americans vulnerable to rising costs. As of 2024, the hourly wage required to afford a two-bedroom apartment was considerably more than the average minimum wage of every U.S. state, spanning from 18 U.S. dollars in West Virginia and North Dakota, up to 47 U.S. dollars in California. In the United States, the monthly average rent in 2023 was estimated to be 1,700 U.S. dollars, which is more than double what it was in 2000. The rising cost of living has had major implications across the country, with more than one third of U.S. consumers struggling to make ends meet.
Characteristics of minimum wage workers
The number of wage and salary workers in the United States being paid the federal minimum has decreased significantly in the last fifty years, due in part to individual states accommodating the demand for higher hourly pay. In 1979, nearly four million workers were earning hourly rates at the federal minimum. In comparison, the total number of workers paid the federal minimum wage in 2023 was 81,000.About 386,000 workers between the ages of 16 and 24 years old were earning hourly rates at the federal minimum wage or less in 2023, making up the majority of workers paid at this rate. Comparatively, there were approximately 112,000 workers aged between 35 and 44 earning the same hourly rates. In the same year, the number of women being paid below the federal minimum wage was nearly twice that of men. The share of employees earning hourly wages at or below the minimum can also vary greatly depending on their level of education.
