Nearly half of the U.S. will see a minimum wage spike in the new year according to a new report from the Economic Policy Institute (EPI).ย
Starting in 2023, 23 states and Washington D.C. will increase their minimum wages by a total of over $5 billion, impacting around 8.4 million workers across the country.ย
According to the report, the states that will experience the highest minimum wage hikes include:ย ย ย
- Nebraskaย
- Washingtonย
- Delawareย
- New Jerseyย
- Coloradoย
- Arizonaย
- Maineย
- Illinoisย
- New Yorkย
- Virginiaย ย ย
Michigan will see the smallest increase, with a 23-cent raise bringing its minimum wage to $10.10 per hour. On the other hand, Nebraska will see the largest hike, adding $1.50 for a minimum wage of $10.50 an hour.ย
Although Washington D.C. will not hike its actual minimum wage, it plans to increase its tipped minimum wage by 65 cents. Illinois, New York and Virginia will all see their minimum wage grow by $1.00.ย
Workers that are expected to see the highest pay increase are full-time employees aged 25 and older.ย ย ย
Because pay discrepancies mostly affect minorities and other less-advantaged communities, wage hikes will have a significant impact on these professionals. More specifically, workers who largely benefit from these increases include 58.7% of women, 21.8% Hispanic workers and 12.2% Black workers.ย ย ย
Over 2 million parents will also receive a raise, alleviating the pressures inflation has on families.ย
Wage hikes greatly vary by state, with some being driven by automatic inflation-related boosts and others deriving from recently passed legislation. ย ย
