Study finds workers earning minimum wage continue to fall behind

A study by the Economic Policy Institute finds workers earning the federal minimum wage continue to fall behind the median income, and the gap is growing.

The study concludes that the federal minimum wage of $5.15 an hour is now less than 40 percent of the national median hourly wage, the largest gap in 30 years. Kevin Ristau, education director for the Minnesota-based Jobs Now Coalition, said the state’s low-wage workers are feeling the impact.

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“If the value of the minimum wage had kept pace with inflation since the late 1960s, it would now be $8.44 an hour,” Ristau said. “More than half a million workers in the state earn less than this inflation-adjusted minimum wage level. And, in Greater Minnesota, more than one-fourth of all workers earn less than this.”

The study notes the minimum wage hasn’t gone up in six years and, since it isn’t linked to inflation, workers in the lowest-paying jobs are falling further behind on meeting basic living costs.

“The purpose of the minimum wage was to put a decent floor under wages, so that everyone willing to work would be able to make enough to cover their basic needs,” Ristau noted. “But at $5.15 an hour, a couple with two children living in Minnesota would have to work more than four full-time minimum-wage jobs just to meet their basic needs.”

For more information
Details on the study and more on the Institute can be found at www.epinet.org

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