4 ms·

Nominal wages have increased, but in 2022 they increased slower than inflation, so people became poorer in real terms: https://www.stlouisfed.org/on-the-econom

Nominal wages have increased, but in 2022 they increased slower than inflation, so people became poorer in real terms: https://www.stlouisfed.org/on-the-economy/2023/feb/nominal-wage-growth-individual-level-2022 https://www.stlouisfed.org/on-the-economy/2023/feb/nominal-w... The number of people making federal minimum wage is tiny, around 0.1% of all workers: https://www.bls.gov/opub/reports/minimum-wage/2023/home.htm https://www.bls.gov/opub/reports/minimum-wage/2023/home.htm

taylodl 2y ago
Nominal wages have been increasing slower than inflation for quite some time. 2022 just made it obvious to everybody what's been going on for some time since the inflation was higher.
AlexandrB 2y ago
> The number of people making federal minimum wage is tiny, around 0.1% of all workers: This is largely meaningless. My first job in high school paid $6.51/hr. The minimum wage at the time was $6.50/hr. I would not be part of the 0.1% earning minimum wage - but in practice I wouldn't be any better off than them either. I suspect a lot of employers play this game so they can claim "pays above minimum wage" in their job posting (that's what my employer did).
- apsec112 2y ago
  In 2014, 1.7% of workers were paid the minimum, and the 10th percentile hourly wage was $8.62, which you could reasonably say was barely more than the minimum. So there were a lot of people making minimum wage or fairly close to it: https://www.epi.org/publication/stagnant-wages-in-2014/ https://www.epi.org/publication/stagnant-wages-in-2014/ However, 10th percentile wages are now $14/hour, which is almost double the minimum: https://www.bls.gov/news.release/pdf/ecec.pdf https://www.bls.gov/news.release/pdf/ecec.pdf and the number of people making exactly minimum wage has shrunk dramatically, from ~1.7% to ~0.1%. So it seems reasonable to say that the number of people making close to minimum wage is now quite small.
  - jgwil2 2y ago
    Would it be fair to say our minimum wage is now so low as to be basically non-existent, in that its effect on the jobs market is negligible? Or is there still some effect of having it there despite the fact that so few jobs actually hit that floor?

taylodl 2y ago

Nominal wages have been increasing slower than inflation for quite some time. 2022 just made it obvious to everybody what's been going on for some time since the inflation was higher.

AlexandrB 2y ago

> The number of people making federal minimum wage is tiny, around 0.1% of all workers: This is largely meaningless. My first job in high school paid $6.51/hr. The minimum wage at the time was $6.50/hr. I would not be part of the 0.1% earning minimum wage - but in practice I wouldn't be any better off than them either. I suspect a lot of employers play this game so they can claim "pays above minimum wage" in their job posting (that's what my employer did).

apsec112 2y ago
In 2014, 1.7% of workers were paid the minimum, and the 10th percentile hourly wage was $8.62, which you could reasonably say was barely more than the minimum. So there were a lot of people making minimum wage or fairly close to it: https://www.epi.org/publication/stagnant-wages-in-2014/ https://www.epi.org/publication/stagnant-wages-in-2014/ However, 10th percentile wages are now $14/hour, which is almost double the minimum: https://www.bls.gov/news.release/pdf/ecec.pdf https://www.bls.gov/news.release/pdf/ecec.pdf and the number of people making exactly minimum wage has shrunk dramatically, from ~1.7% to ~0.1%. So it seems reasonable to say that the number of people making close to minimum wage is now quite small.
- jgwil2 2y ago
  Would it be fair to say our minimum wage is now so low as to be basically non-existent, in that its effect on the jobs market is negligible? Or is there still some effect of having it there despite the fact that so few jobs actually hit that floor?