Over 8.3 Million Workers to Benefit as Nineteen States Increase Minimum Wage

In January 1, millions of workers across 19 states will get larger paychecks thanks to increases in the minimum wage. In total, workers in these states will earn about $5 billion more over the coming year.

Additionally, 47 cities and counties are also increasing local minimum wages, further expanding the number of people who will benefit.

Some notable state increases include:
 

• Hawaii: Minimum wage rises from $14.00 to $16.00, adding about $1,346 a year for full-time workers.
• Missouri: Minimum wage increases from $13.75 to $15.00, putting an extra $920 per year in a full-time worker's pocket.

Minimum wages are being raised in different ways—some by state legislatures, some by ballot measures voted on by the public, and others by formulas that adjust wages for inflation each year.
 

Who Benefits Most

The minimum wage increases will reach a wide range of people:
 

• Women: 58% of workers getting raises are women.
• Black and Hispanic workers: These groups are overrepresented among those affected, compared to their share of the workforce.
• Adults: Nearly 90% of workers benefiting are adults, not teenagers.
• Parents: More than one in four are parents, with millions of children living in households that will see a pay increase.
• Full-Time Workers: Almost half of those benefiting work full time.

Many of these workers have incomes near or below the poverty line, so even a small raise makes a big difference.
 

Why Raising the Minimum Wage Matters

Wages have not kept up with the rising cost of living for many years. The federal minimum wage hasn’t increased from $7.25 an hour for more than 15 years, losing more than 30% of its value during that time.

This means many workers have struggled more to pay for essentials, like food and housing, as prices went up but their pay didn't.

States that automatically adjust their minimum wage for inflation, like Minnesota, help workers keep up with rising costs. However, some lawmakers have opposed these changes, keeping wages lower in some states.

By 2026, 17 states and Washington D.C. will have a minimum wage of at least $15 per hour. For the first time ever, more workers will earn at least $15 than those stuck at $7.25.
 

How Minimum Wage Increases Help with Rent and Housing

One of the biggest expenses for workers and their families is housing. Rising rents and home prices can make it hard—sometimes impossible—for people earning low wages to afford a safe and stable home.

When states raise the minimum wage:
 

• Workers have more money to cover housing costs. For example, a full-time worker earning an extra $1,000 or more a year can put that money toward rent, bills, or saving for a deposit.
• Families are less likely to fall behind on rent or face eviction, reducing stress and keeping children in stable homes.
• More income means workers are less likely to have to choose between housing and other essentials like food or medicine.

Even as minimum wage increases are helping, in many places the higher wage still doesn’t fully cover the cost of living, especially in expensive cities.

But these state and local changes are important steps toward making housing more affordable for millions.
 

Conclusion

Raising the minimum wage is a powerful tool to help working people cope with rising prices and afford basic necessities, especially rent and housing.

While more work remains to make sure every worker can afford a decent life, the coming wage hikes in 19 states will make a real difference for millions of families across the country.

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