The United States federal minimum wage remains frozen at $7.25 per hour for the 17th consecutive year, having lost 37.0% of its real purchasing power to inflation since 2009. In response to federal inaction, 30 states, Washington D.C., and 38 municipalities established local wage baselines up to $20.00 per hour, while 68% of Americans favor a $15 federal standard. The figures below come from empirical research published by the U.S. Bureau of Labor Statistics, the Economic Policy Institute, the Congressional Budget Office, Eurostat, and MIT.
TL;DR
- The US federal minimum wage has remained frozen at $7.25/hr since July 2009 (U.S. DOL)
- The federal minimum wage has lost 37.0% of its real purchasing power since 2009 (EPI)
- 30 US states plus Washington D.C. mandate minimum wages above $7.25 (EPI Tracker)
- Washington State ($16.66) and D.C. ($17.50) lead all US jurisdictions in baseline wages (DOL)
- Luxembourg leads all global nations with an $18.80/hr equivalent minimum wage (Eurostat)
- 64.0% of US workers earning at or below the federal minimum wage are women (BLS)
- 65.0% of minimum wage workers are employed in food service and hospitality (BLS)
- The federal tipped worker subminimum wage has remained frozen at $2.13/hr since 1991 (DOL)
- The MIT living wage for a single adult in the US averages $21.62 per hour (MIT)
- A $15 federal minimum wage would raise earnings for 27.8 million US workers (EPI)
- 68.0% of Americans support raising the federal minimum wage to at least $15/hr (Pew)
- 19 US states automatically adjust their minimum wages annually to match CPI inflation (EPI)
- California established a $20.00/hr sectoral minimum wage for fast food workers (CA DIR)
1. Federal Wage Stagnation and State Legislative Divergence
The federal wage floor in the United States represents the longest legislative wage freeze in modern history. The U.S. Department of Labor maintains the federal statutory minimum wage at $7.25 per hour, unchanged since July 2009.
Federal inaction has produced extreme state divergence: 30 states and Washington D.C. have enacted higher wage floors, led by Washington State ($16.66/hr) and D.C. ($17.50/hr), leaving only 1.02 million workers (1.3% of hourly labor) at the federal $7.25 rate.
| Metric | Value | Source |
|---|---|---|
| US Federal statutory minimum wage (unchanged since July 2009) | $7.25 per hour | U.S. Department of Labor (DOL) |
| Consecutive years the US federal minimum wage has remained frozen | 17 consecutive years | U.S. DOL / Congressional Research Service |
| US workers earning at or below the federal minimum wage ($7.25) | 1.02M workers (1.3% of hourly workers) | U.S. Bureau of Labor Statistics (BLS) |
| US states and territories with state minimum wages above $7.25/hr | 30 states + D.C. | Economic Policy Institute (EPI) |
| Highest state/territory minimum wage in the United States (Washington D.C.) | $17.50 per hour | D.C. Department of Employment Services |
| Highest state minimum wage in the US (Washington State) | $16.66 per hour | Washington Dept of Labor & Industries |
| US localities with local municipal minimum wages exceeding $18.00/hr | 38 cities (e.g., Seattle, West Hollywood) | UC Berkeley Labor Center |
Labor compensation inequities connect to our gender pay gap statistics. Source: Economic Policy Institute Minimum Wage Tracker.
2. International Comparisons: Luxembourg, Australia, and the EU
Advanced industrial economies implement significantly higher statutory baselines and collective bargaining frameworks. Eurostat data confirms that Luxembourg leads all global nations with a monthly statutory minimum wage of €3,085 ($18.80/hr equivalent).
Australia’s Fair Work Commission mandates AUD $24.10/hr ($15.80 USD), while the UK (£11.44) and Germany (€12.82) enforce strong baselines. Within the EU, 22 of 27 nations enforce statutory minimum wages, while Nordic nations achieve high wage floors through sector-wide collective bargaining.
| Metric | Value | Source |
|---|---|---|
| Top national statutory minimum wage globally (Luxembourg) | €3,085/mo ($18.80/hr equiv) | Eurostat Minimum Wage Statistics |
| Australia national adult minimum wage (high global rank) | AUD $24.10/hr ($15.80 USD) | Fair Work Commission (FWC) |
| United Kingdom National Living Wage (adult rate) | £11.44/hr ($14.60 USD) | UK Low Pay Commission |
| Germany statutory national minimum wage (Mindestlohn) | €12.82/hr ($13.90 USD) | Federal Statistical Office (Destatis) |
| European Union member states with statutory national minimum wages | 22 of 27 EU nations | Eurostat |
| EU nations utilizing collective bargaining instead of statutory wage (Nordics/Italy) | 5 nations (DK, SE, FI, AT, IT) | European Trade Union Institute (ETUI) |
Union organizing trends sit in our union membership statistics. Source: Eurostat Minimum Wage Statistics.
3. Demographic Composition: Gender, Youth, and Tipped Labor
The demographics of minimum wage labor reflect heavy structural concentration in service occupations. The U.S. Bureau of Labor Statistics reports that women comprise 64.0% of all workers earning at or below the federal minimum wage.
Young workers aged 16 to 24 represent 48.0% of minimum wage labor, with 65.0% concentrated in restaurant and leisure hospitality. Crucially, the federal subminimum wage for tipped workers remains locked at $2.13 per hour, unchanged since 1991.
| Metric | Value | Source |
|---|---|---|
| Women share of US workers earning at or below the minimum wage | 64.0% | U.S. Bureau of Labor Statistics (BLS) |
| Young workers aged 16-24 share of minimum wage earners | 48.0% | BLS Characteristics of Minimum Wage Workers |
| Minimum wage workers working in leisure and hospitality / food service | 65.0% | BLS Current Population Survey |
| Minimum wage earners with a high school diploma or less | 74.0% | U.S. Bureau of Labor Statistics |
| US Federal subminimum wage for tipped employees (unchanged since 1991) | $2.13 per hour | U.S. Department of Labor (FLSA) |
Youth career entry dynamics sit in our gen-z-workplace-statistics-2026. Source: BLS Characteristics of Minimum Wage Workers.
4. Inflation Erosion and the Widening MIT Living Wage Gap
Severe price inflation has hollowed out the real economic purchasing power of stagnant wages. The Economic Policy Institute calculates that the $7.25 federal minimum wage has lost 37.0% of its real purchasing power compared to 2009.
At its historical peak in 1968, the federal minimum wage was equivalent to $14.45/hr in inflation-adjusted 2026 dollars. Today, the MIT Living Wage Calculator establishes the national basic living wage for a single adult at $21.62 per hour.
| Metric | Value | Source |
|---|---|---|
| Inflation-adjusted real value decline of the $7.25 federal minimum wage since 2009 | -37.0% purchasing power loss | Economic Policy Institute (EPI) |
| Peak purchasing power of the US federal minimum wage (in 1968 dollars adjusted to 2026) | $14.45 per hour | Congressional Research Service (CRS) |
| Living wage required for a single adult with zero children in the US (national average) | $21.62 per hour | MIT Living Wage Calculator |
| Hours at federal minimum wage ($7.25) required to afford a standard 1-bedroom rental | 108 hours per week | National Low Income Housing Coalition (NLIHC) |
Tech labor market shifts tie to our tech layoffs statistics. Source: MIT Living Wage Calculator.
5. The $15 Federal Wage Debate: Poverty Reduction vs. Displacement
Economic modeling illustrates profound macroeconomic impacts associated with raising the federal floor. Congressional Budget Office (CBO) and EPI modeling indicates that a $15.00/hr federal minimum wage would directly boost wages for 27.8 million workers.
A $15 floor would lift 3.7 million Americans out of poverty, with 68.0% of the public supporting the measure in Pew polling, balanced against a projected median displacement of 1.3 million low-margin positions.
| Metric | Value | Source |
|---|---|---|
| US workers who would see a direct wage increase under a $15/hr federal minimum wage | 27.8M workers (19% of workforce) | Economic Policy Institute (EPI) |
| Estimated net reduction in US population living below the federal poverty line ($15 wage) | 3.7M people lifted from poverty | Congressional Budget Office (CBO) |
| Estimated potential job displacement under a national $15/hr wage by 2028 (CBO median) | 1.3M jobs (0.8% of workforce) | Congressional Budget Office |
| Share of Americans supporting raising the federal minimum wage to at least $15/hr | 68.0% | Pew Research Center |
Engineering wage distributions sit in our software developer salary statistics. Source: Congressional Budget Office.
6. CPI Inflation Indexing and Sectoral Fast Food Wage Mandates
State legislatures are increasingly decoupling wage policy from political gridlock through automatic inflation adjustments. Nineteen US states now automatically index minimum wage increases to annual Consumer Price Index (CPI) inflation rates.
Sectoral standards have emerged: California’s AB 1228 instituted a mandatory $20.00/hr minimum wage for fast-food workers, while leading national retailers (Costco at $19.50/hr, Target at $15–$24/hr) enforce voluntary corporate wage floors.
| Metric | Value | Source |
|---|---|---|
| US states indexing minimum wage increases automatically to annual CPI inflation | 19 states | Economic Policy Institute |
| Major retail and tech employers with corporate minimum starting wages of $15-$20+ | Costco ($19.50), Target ($15-$24), Amazon ($17+) | Company Corporate Disclosures |
| Fast food sector minimum wage in California under AB 1228 legislation | $20.00 per hour | California Dept of Industrial Relations |
| Job growth in California limited-service restaurants following AB 1228 implementation | Stable (+0.7% YoY) | UC Berkeley IRLE Study |
Summary: Minimum Wage by the Numbers
| Metric | Value | Primary Source |
|---|---|---|
| US Federal minimum wage | $7.25/hr | U.S. DOL |
| Years federal wage unchanged | 17 years (since 2009) | U.S. DOL / CRS |
| US workers earning <= $7.25 | 1.02M (1.3%) | BLS |
| States with minimum wage > $7.25 | 30 states + D.C. | EPI |
| Highest US state minimum wage | $16.66 (Washington) | WA L&I |
| Highest national wage globally | $18.80/hr equiv (Luxembourg) | Eurostat |
| Australia adult minimum wage | AUD $24.10 ($15.80 USD) | FWC |
| Germany statutory minimum wage | €12.82 ($13.90 USD) | Destatis |
| Women share of US min wage workers | 64.0% | BLS |
| Hospitality share of min wage workers | 65.0% | BLS |
| Federal tipped subminimum wage | $2.13/hr | U.S. DOL |
| Real purchasing power loss since 2009 | -37.0% | EPI |
| 1968 peak federal wage adjusted to 2026 | $14.45/hr | CRS |
| National average MIT living wage | $21.62/hr | MIT Living Wage |
| Workers helped by $15 federal wage | 27.8M workers | EPI |
| Americans supporting $15 federal wage | 68.0% | Pew Research |
| California fast food minimum wage | $20.00/hr | CA DIR |
Methodology and Sources
The statistics in this report were compiled from federal labor bureau employment censuses, national statutory wage registries from the U.S. DOL and Eurostat, nonpartisan economic modeling from the CBO and EPI, and cost-of-living index datasets.
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U.S. Bureau of Labor Statistics (BLS): Characteristics of Minimum Wage Workers (definitive demographic and industry employment breakdowns).
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Economic Policy Institute (EPI): Minimum Wage Tracker & Living Wage Research (state-by-state policy maps and purchasing power models).
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Congressional Budget Office (CBO): The Budgetary and Economic Effects of Raising the Federal Minimum Wage (poverty reduction and employment elasticity forecasts).
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Eurostat: Statutory Minimum Wages in the European Union (monthly minimum wage comparisons across EU member states).
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MIT Department of Urban Studies and Planning: MIT Living Wage Calculator (geographically localized living costs and basic family budgets).
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Pew Research Center: Public Views on Minimum Wage Policies (bipartisan public opinion polling datasets).
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UC Berkeley Institute for Research on Labor and Employment (IRLE): Evaluating the Effects of Sectoral Minimum Wages (California AB 1228 fast food economic impact analysis).
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Data watch: Hourly minimum wage statistics refer to non-exempt adult workers. Purchasing power comparisons apply the Consumer Price Index for All Urban Consumers (CPI-U) deflator across historical dollar baselines.
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Last updated: August 2026. This roundup is updated quarterly as state statutory wage increases take effect and federal labor datasets are published.