National average minimum wage

The federal minimum hourly wage was last increased by Congress in mid-2009, from $6.55 to $7.25. But, 30 states and the District of Columbia have rates higher than the federal minimum as of 2023. Since the recession, the minimum wage has emerged as a potent political issue that has driven several ballot initiatives as well as regular state-level increases by legislatures. In addition to one-time legislated increases, over 18 states currently enact annual cost-of-living adjustments to their rates, with the cumulative effect of driving a modest real increase in the national average, despite a decline in the value of the federal minimum.

In addition to such developments in the period, several states passed legislation to continue to scale up their minimum wage requirements during the five years, leading to an increase in the average minimum wage. While various measures have been taken to increase the federal minimum wage rate such as through introduced bills in Congress, these rates have remained unchanged since 2009. Nonetheless, this is expected to be a recurring issue over the next several years. Some states are likely to increase their minimum wages, with some having already done so, despite inaction at the federal level, pushing a boost in the national average regardless. Since surging inflation after the COVID-19 pandemic, there have been additional pushes for wage increases in various states from the Western regions of the United States, like Colorado to California, all the way to the Eastern regions from New York to Florida. A 2022 executive order by President Biden to increase the minimum wage for workers and contractors employed at the federal level has also contributed to these increases in the period. However, the unmoved rates of change for the federal minimum wage amid inaction on Congress on this issue have also kept growth pressured despite these actions, which reflects a slight incline in growth for average wage rates in 2022. While the federal minimum wage has not increased during the period, statewide actions to boost their wages helped transpire soft boosts. However, as not every state has adopted such measures, the effects of such measures did not help generate a sizable boost in the national average. In 2025, the average national minimum wage will expand because of implementing increases in 21 states, including California, Ohio, Arizona, and Virginia. This change will boost the national average despite the federal rate staying the same.