Minimum Wage Increases Set to Impact Over 9 Million U.S. Workers in 2025
Starting January 1, 21 states and 48 localities will raise their minimum wages, with some reaching historic highs.
- Washington State will lead with the highest state minimum wage at $16.66 per hour, while Tukwila, Washington, will set the nation's highest local minimum wage at $21.10 per hour.
- California, New York, and 10 other states will implement minimum wages of $15 per hour or higher, affecting one-third of U.S. workers in these areas.
- Inflation adjustments account for 14 of the 21 state increases, while legislation and ballot measures drive the rest, with states like Missouri and Nebraska on paths to $15 minimum wages by 2026.
- The federal minimum wage remains at $7.25 per hour, unchanged since 2009, representing its lowest inflation-adjusted value in nearly 70 years.
- Critics and business groups express concerns over rising labor costs, while worker advocates argue these increases are essential to address affordability challenges and economic inequality.