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- A post from the Economic Policy Institute showed which states are raising their minimum wages at the start of 2024.
- EPI found this will translate to nearly 10 million workers being impacted.
- Minimum wage workers in California, Maine, and Michigan will see pay increases, for instance.
Millions of minimum wage workers are set to ring in the new year with a raise. Those regional pay hikes come even as the federal minimum wage lingers untouched at $7.25 an hour.
Come January 1, minimum wage earners in 22 states will see their wages go up, according to the left-leaning Economic Policy Institute. And, beyond statewide bumps, 38 cities and counties will also hike their starting pay.
The new minimums mean that nearly 10 million workers will get a raise, per EPI. The majority of workers getting a bump are women, and Black and Hispanic workers will also disproportionately benefit from the mandated higher pay. Past research from the National Employment Law Project on the push to raise the minimum wage, led in part by the advocacy group Fight for $15, found that states boosting their minimums have helped cut down on Black-white wealth gaps and resulted in billions more in economic output.
Business Insider looked at the Economic Policy Institute's post about minimum wage changes as well as values from the Department of Labor to see where in the US workers making minimum wages will see pay bumps. You can hover over each state and Washington, DC, to see where there will be changes at the start of 2024.
California, New York, and Montana are three states that will be raising their minimum wages. For instance, California will increase its minimum wage from $15.50 an hour to $16.00 an hour. According to the EPI post, 3.2 million California workers are estimated to be impacted.
Some of the increases that are coming shortly are due to inflation adjustments or previous legislation to gradually hike pay. Based on a table from the EPI post, 12 of the increases are specifically inflation adjustments, eight are from legislation, and two were noted as ballot measures.
Maryland is one of the states that will be raising the minimum wage because of legislation. The minimum wage for Maryland will rise from $13.25 an hour to $15.00 an hour. This is due to the Fair Wage Act of 2023 signed by Gov. Wes Moore earlier this year. "Maryland lawmakers passed legislation in 2019 setting the state on the path to $15 an hour," the EPI post said, but the newer legislation means minimum wage workers in Maryland will be earning that wage quicker than originally planned.
With many workers poised to take home more pay soon due to these minimum wage increases, it won't just be workers benefiting from the larger paychecks.
According to the EPI post, there are 5.6 million children living in households where someone will see a minimum wage increase.
"The increases will provide critical support to workers and families in need," the post said.
The increases come at a time when the labor market is still strong, based on Bureau of Labor Statistics data before 2024. For example, 199,000 jobs were added in November. While that's down from 2022's blockbuster job gains, November's gain was more than anticipated. The unemployment rate was also 3.7%, near its historic low, as of November — so workers are still seeing a lot of opportunities despite job openings cooling and will soon receive greater pay.
Nick Bunker, economic research director for North America at the Indeed Hiring Lab, told Business Insider that he thinks the most recent jobs report released by the Bureau of Labor Statistics "is exactly what you want to see to feel more comfortable about the labor market being on really stable footing."