More than 8.3 million workers across the United States began 2026 with a raise, as minimum wages increased in 19 states and 47 cities and counties on January 1.
State-by-State Increases
The largest increase took effect in Hawaii, where the minimum wage rose by $2, bringing it to $16. Minnesota saw the smallest increase, a 28-cent hike to $11.41. Arizona, California, Colorado, Connecticut, Maine, Michigan, Missouri, Montana, Nebraska, New Jersey, Ohio, Rhode Island, South Dakota, Vermont, and Virginia also increased their minimum wages.
These increases arrive during a period of economic uncertainty. The year preceding these wage hikes saw the most layoffs since the pandemic, alongside rising unemployment, inflation, and challenges for businesses related to artificial intelligence.
Disproportionate Impact
The Economic Policy Institute notes that certain demographics will be most affected by these changes. Women, who comprise nearly 60% of the minimum wage workforce in the affected states, will see significant impact. Black workers, representing 10.7% of the affected workforce, and Latino workers, at 38.3%, will also be disproportionately affected, exceeding their representation in the overall workforce of these states (8.7% and 19.8% respectively).
Despite these increases, the Economic Policy Institute points out that minimum wages often remain below a living wage for a single adult. Approximately 20 states continue to adhere to the federal minimum wage of $7.25 per hour, a rate unchanged since 2009.
What Could Happen Next?
It is possible that additional states and localities may consider raising their minimum wages in the future, particularly if economic pressures persist. Further research into the effects of these increases could influence future policy decisions. It is also likely that discussions will continue regarding the adequacy of the federal minimum wage and potential adjustments.
Frequently Asked Questions
How many workers are affected by these wage increases?
More than 8.3 million workers are set to benefit from the minimum wage increases that took effect on January 1.
Which state saw the largest minimum wage increase?
Hawaii saw the largest increase, with the minimum wage rising by $2 to $16.
What is the current federal minimum wage?
The federal minimum wage remains at $7.25 per hour and has not been changed since 2009.
How do you think these minimum wage increases will impact local economies and individual financial stability?
