Wage Increase Delivers Real Results for Working Families
Six months after the federal minimum wage was raised to $17 per hour, new data shows the increase has lifted an estimated 3.7 million working Americans above the poverty line — delivering on the promise that a full-time job should provide enough to live on with dignity.
The Bureau of Labor Statistics reports that wage growth among the lowest-paid workers outpaced inflation for the first time in decades, with the bottom quartile seeing real wage gains of 6.2% over the past year.
Impact by the Numbers
The effects of the wage increase have been broad and significant:
- Workers affected: 27 million Americans received a raise, either directly or through the ripple effect on near-minimum wages
- Child poverty: Childhood poverty declined by 14% in affected households
- Food insecurity: SNAP enrollment dropped by 8% as workers earned enough to feed their families
- Local economies: Consumer spending in low-income communities rose 5.3%, boosting small businesses
- Gender gap: The increase disproportionately benefited women, who make up 58% of minimum wage workers
Contrary to predictions of widespread job losses, employment has remained stable, with the unemployment rate holding steady at 3.8%. Economists attribute this to increased consumer spending power offsetting higher labor costs.
Economic Ripple Effects
Small businesses in communities with large numbers of newly-higher-paid workers report increased revenue as workers spend their additional earnings locally on goods and services, creating a virtuous cycle of economic growth.
