Who Works for Minimum Wage?
COMMENTARY | Seven dollars and 25 cents per hour. That is the prevailing minimum wage in the United States. If an employee makes the minimum wage and works 40 hours a week, 52 weeks a year, that is only a gross income of $15,080. That is hardly enough to support one person, let alone an entire family.
So how do people do it? A better question might be, who are the people doing it? To find out the answer to this question, I have dug through the data at the Bureau of Labor Statistics to find out who these people are. The answers might surprise you.
They Are Few
In 2010, right around 73 million Americans aged 16 and older (or roughly 58.8 percent of the entire U.S. Workforce) was paid by the hour. Of these 73 million workers, 4.4 million or approximately 6 percent were making at or below the minimum rate.
When factoring in salaried workers, well below 1 in 25 workers was making at or below the federally required minimum wage. This is a lot lower number than some politicians in Washington would lead you to believe.
They are Southern
States with the highest proportion of hourly-paid workers earning at or below $7.25 per hour included Mississippi, Texas, Alabama and West Virginia (all between 9 and 10 percent).
States with the lowest percentage of workers earning at or below that rate were Washington, Oregon, Alaska and California (all at or below 2 percent)
They Are White, Black, Asian & Hispanic
It may come as a bit of a surprise, but race is almost statistically irrelevant for determining who is likely to earn minimum wage. The numbers break out as follows: About 6 percent of White hourly-paid workers earned at or below the federal minimum, compared to about 5 percent for Asians, 7 percent for Blacks and 6 percent for Hispanics.
They Are Young
If there is one demographic that can be pointed at to find out who is making the federal minimum wage, it is young people. About half of all hourly-wage workers making at or below $7.25 per hour are under the age of 25. More than 1 in 4 of all minimum wage workers are teenagers.
Among employed teens paid by the hour, about 25 percent earn at or below the minimum wage. For workers aged 25 and up, that number is only 4 percent.
After looking over the numbers, a rational person will come to three conclusion:
1. It just simply isn't true that tens of millions of Americans support their families on minimum wage earnings.
2. There is nothing racist about the federal minimum wage. No racial group can claim that theirs is the one carrying more of the burden than any of the others.
3. High school- and college-aged people are by far the largest groups of minimum wage workers, many of whom are working their first jobs. With a higher minimum wage, one has to wonder if many of these jobs would even exist.
Published by Alex Wibholm
Alex is a lifelong Iowa resident with a strong background in personal finance, international business, midwest college & pro sports, politics and agriculture. He currently is employed with a large internatio... View profile
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4 Comments
Post a CommentTo Kim Adams:
I am a 40 year old who did in fact seem to do everything right. I have no criminal record and I have an MBA from Walsh. And yet, I cannot find a job making more than 8 dollars an hour. Most of my experience is in manufacturing, and most manufacturing jobs don't last. I have now settled for working at a deli sweeping up and filling customer orders. Like I said, its 8 an hour but it does have health insurance. I live at home with Mom and Dad as I am not married.
So to your opinion that 'its my fault' that I make min wage is false.
Only people who should be working for minim wage are 1) young, aka teenager, and unexperianced 2) undereducated or 3) underable, aka physically or mentally disabled, with most physical disabiltiies easilly overcome.
If you are a healthy 30 year old with all your mental capacity and still working for minimum wage, its your fault you are not making a decent salary. Get educated and get a better job. Not always a degree, but certifications or at least knowledge.
Take every training opportunity, every oppertunity to work late or in a new capacity. Work smarter and stop blaming companies because of YOUR failing to get a good job. If you arent qualified, you arent qualified. It is your responsiblity to get qualified for the bigger paycheck and earn it through good work ethics!
Thanks for posting this information and hopefully it will be posted on every website! I feel that minimum wage should go up and when it finally went up for the first time in about 20 years I think was in 2007 and it was well over do. But times has change so much in this country, from the sale out of American jobs to avoid paying a decent wage to employers crying, and whining, to keep paying people low wages to some companies shouldn't be in business if they can't afford to pay employees a decent wage, with the prices of this economy is no excuss!
Then you got these politians out here insinuating people don't want to work, or ridicule them for getting assistance that can help them afford to have a roof over their head and food for their children and if it wasn't for some of the programs, that they want to cut even, though they don't want to cut their pay it would be much more homelessness, and if things get any worst people will be setting up camp anywhere they can to find some place to sleep maybe in the woods in back of someone's home, on their sidewalks. Things has got to get better people are not looking for a hand out just because a few folks maybe using the system.
People want jobs!.... and to be able to afford a nice place for their families too!.. I know people that's been out of work due to no fault of their own and has been out to work for 6 months to 2 years and the politians in Congress has a lot to due with this mess so they need to quit trying to say everything that is wrong is because of the President, and need to quit bashing the President all the time and get to work since they keep trying to fool the American People that they are doing what is best.
Half of them in Congress has shown me that they are not as smart as they try to make us believe, they are greedy, selfish, and I hope when people go to the polls this time they really think about all this obstruction they have done for the last 31/2 years! Their pay should of been cut just like the average american, such as the police, firefighters, regular employees, ect.. and no more tax breaks and loop holes that was put in place for them and their special interests, helping gas prices to rise, is why people are not making enought money to survive is because they are making it "all," and receiving bonuses, while the average american with a degree, or not is struggle to survive!
Not to mention they always accused others of not being Patriot, but what do you call that we they are selling America out then bainwash the people to think it is the President or the Democrats. What is this world coming to? They are the ones that I would be more concern about being Comminist! yet instead want us to believe it is the President? People are not buying that anymore except the ones that are not use to change and can't work together for stirring up drama! or hating on someone because they are unlike themselves.
Things are starting to look up slowly. Not one of the Politians, or contenders has not created one job without unconstitional attachments, while they are to busy critizing the president. Get Busy People! The only ones I would see worth voting for would be the the President, or Romeny even though he is a little out of touch or goofy. (smile) not in a bad way Mitt.
Don't forget Georgia! KIA USA & it's suppliers hire mostly "TEMPS" which are paid minimum wage.