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Jan 4, 2023 - Economy & Business

Map: The states hiking minimum wage for 2023

Emily Peck
Data: Economic Policy Institute; Note: Note: Hawaii and Florida increases took effect in October 2022; Map: Kavya Beheraj/Axios

Millions of Americans got a raise this week, as minimum wage increases in 23 states and Washington, D.C. went into effect.

Why it matters: The biggest factor driving the increases was inflation — 13 states tie their minimum wage rate to the Consumer Price Index, as Wolters Kluwer notes in a new analysis. Other states had increases set by legislation or ballot initiatives.

  • While the federal wage floor remains stuck at $7.25, a growing number of states now have minimum wages of at least $15 an hour, including Washington ($15.74), California ($15.50) and Massachusetts ($15).
  • In the coming years, more states will reach $15 an hour — once a long-shot goal of activists — including Connecticut (June 2023), New Jersey (2024) and Illinois (2025).

Zoom out: These wage increases are part of a bigger trend in the workforce, where lower-income, lower-skilled workers are grabbing bigger wage increases than higher earners (in terms of percentage).

  • Wages for the lowest-skilled workers have risen more than for high-skill workers over the last 12 months, per the Atlanta Fed's wage tracker.
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