Despite inflation, the federal minimum wage has not had an increase in 15 years

This week marked the 15th anniversary of the last increase to the federal minimum wage, as it has remained $7.25 for all covered nonexempt workers since July 24, 2009.

The 15-year period is the longest stretch the federal minimum wage has gone without an increase since one was implemented in 1938. The federal minimum wage remained unchanged from 1997 through 2007 when it increased from $5.15 an hour to $5.85.

In 2008, the minimum wage went up again to $6.55. Then it was raised to $7.25 in 2009 — where it has remained ever since. That means someone working full-time at the current minimum wage would earn $15,080 a year.

According to the National Conference of State Legislatures, 33 states have minimum wage laws that exceed federal requirements. But the federal minimum wage still applies in the following states:

Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Utah.

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If the 2009 minimum wage had kept up with inflation, the minimum wage would now equal $10.58. If the minimum wage in 1997 kept up with inflation, it would now be $10.08. But dating back to 1975 when the minimum wage was $2.10 an hour, it would now have the spending power of $12.66.

Meanwhile, data from the Bureau of Labor Statistics shows that fewer Americans are making minimum wage. According to federal data, 1.3% of workers made at or below minimum wage in 2023, compared to 6% in 2010 and 13.4% in 1979. Those aged 16-19 were most likely to be in minimum wage jobs.

Although not many Americans are making minimum wage, there is a sizable chunk of the country making below $15 an hour.

According to an Oxfam report, using 2022 data, 31.9% of the workforce had an hourly rate of under $15 an hour. Its data showed that a majority of working single parents made less than $15 an hour.

Meanwhile, those earning less than $15 an hour are making far less than the national average. As of June 2024, the average worker was making $35 an hour, the Labor Department said.