California has one of the lowest rates of low-wage workers
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Nearly 16% of California workers earn less than $17 an hour — among the lowest rates in the country — per new data from Oxfam, a global, nonprofit advocacy group for income equality.
Why it matters: The state has long been a leader in raising minimum wages, helping lift many Californians above that threshold, which Oxfam defines as a low-wage worker.
Context: Oxfam revised that definition this year — from those earning less than $15 an hour to those earning less than $17.
- In 2022, 17.9% of California workers made less than $15 an hour.
The big picture: Nationwide, hourly wages are up, in part because of inflation, along with a strong labor market where lower-wage employees are still in high demand. Another factor is the work of advocates, who pushed for minimum-wage increases for more than a decade, Axios' Emily Peck reports.
- Yes, but: The federal minimum wage is still $7.25.
State of play: California's minimum wage rose with inflation in January to $16 an hour — third-highest in the country behind Washington state and Washington, D.C.
- Last year, Gov. Gavin Newsom signed two laws boosting minimum pay for specific industries.
- As of April, fast-food workers make at least $20 an hour.
- Health care workers were set to receive gradual minimum-wage increases up to $25 an hour by 2033 starting in June, but that's been delayed until at least October due to state budget issues.
Zoom in: Dozens of California cities have set their own minimum wages to account for high costs of living.
- San Francisco's minimum wage is $18.67, having increased annually since 2015 based on inflation.
- It ranks in the top five in the state, below West Hollywood, Mountain View and Sunnyvale.
Reality check: California's high cost of living means higher hourly pay doesn't go as far as in other states.
- In San Francisco, two working adults with one child would each have to make $40.76 an hour to afford their basic needs, according to MIT's Living Wage Calculator.
Between the lines: The data also highlights wage disparities for women and people of color, particularly Latino workers in California.
- About 23% of Hispanic workers make less than $17 an hour compared to 18.3% of Black workers, 14.4% of white workers and 11.5% of Asian workers.
- 19% of women make less than $17 an hour versus 13% of men.
What to watch: More than three million workers in California would see higher pay if the state raised its minimum wage to $17 an hour, according to Oxfam.
