Good news on the wage front!
The minimum wage will get a boost in 21 states in the new year. According to the Economic Policy Institute, this will impact approximately 2.4 million workers by up to one dollar to an average of $8 and a high of $9.15.
Per a piece on USA Today, the increase will help the economy overall since lower wage workers tend to spend most of their paychecks.
David Cooper, senior economic analyst at EPI, told the newspaper:
“It’s not going to bring them a life of luxury, but it’s a substantial amount of money for somebody struggling to get by. They can make payment plans for a car or buy some extra groceries. “
All of the increases will take effect on Thursday except in New York where it will kick in tomorrow.
And by early 2016, 29 states containing the majority of our nation’s workforce will have higher minimum wages than the federal government. President Obama backs a bill to raise the federal minimum wage to $10.10 an hour but it’s currently sitting in Congress with opposed Republicans.
We should add that per the piece, ADP has revealed state minimum wage bumps have helped low wage workers secure faster earnings growth than higher paid employees this past year.