Half of U.S workers Will Live in States with at Least a $15 Minimum Wage by 2027

Nearly half of U.S workers will live in states with at least a $15 minimum wage by 2027, Economic Policy Institute

In the 2024 election, Alaska and Missouri voters approved ballot measures to increase their state minimum wage to $15 an hour in the coming years. Now 15 states and Washington D.C. either have or will have a minimum wage of at least $15 an hour.

In addition, four more states will likely reach the $15 mark by 2027 because of automatic annual inflation adjustments built into their minimum wage laws. With these changes, nearly half (48.1%) of the U.S. workforce will live somewhere with a minimum wage at or above $15 an hour by 2027.¹

Source: Minimum Wage Tracker | EPI

The successful November ballot measures will lift wages for more than a half million low-wage workers in Missouri and Alaska. As Table 1 shows, Missouri’s minimum wage increase will raise wages for 518,300 workers through 2026, increasing their overall pay by nearly $600 million. In Alaska, 30,800 workers will receive $51 million in increased wages through 2027. These wage gains will bring needed relief to workers navigating higher costs of living in recent years and also shape more equitable state economies by increasing wages for large shares of women and people of color.

It is notable that this is the second time Missouri and Alaska voters have passed ballot measures to increase their minimum wages within the past 10 years. Alaska passed a ballot measure in 2014 to raise the minimum wage to $9.75 an hour, while Missouri passed a ballot measure in 2018 to raise the minimum wage to $12 an hour. Both states also make annual adjustments to their minimum wages to account for inflation.

Voters in these states recognized that even with existing automatic inflation adjustments, the value of the state’s minimum wage that had been set years ago was simply too low relative to the cost of living. Maryland and New York policymakers have also made similar decisions to revisit their minimum wage increases within recent years. Policymakers should be proactive in regularly scrutinizing the adequacy of state and local wage standards so that they achieve the intended level of economic security for low-wage workers.

Policymakers and voters throughout the country have all recognized the need to set minimum wages at $15 or more. Further, the strong consensus of high-quality minimum wage research is that increasing the minimum wage increases workers’ earnings without increasing unemployment or other significant negative economic effects. Unfortunately, there are still state lawmakers who are choosing to deny higher pay for workers in their states. For instance, Oklahoma’s governor delayed a minimum wage ballot measure despite the measure receiving twice the necessary signatures to be on the ballot. Many states with low minimum wages also preempt localities from passing their own minimum wage increases.

Despite the significant progress for a higher minimum wage, there are still more workers living in states that use the paltry federal minimum wage of $7.25 an hour than in states with a minimum wage of at least $15 (see Table 2). Twenty states use the federal wage floor, even though it hasn’t increased since 2009. A single adult working full time at $7.25 per hour will earn $15,080 annually, only $20 dollars more than the 2024 official poverty line. While it is true that the federal minimum wage is so low that few workers earn exactly $7.25, such a weak wage floor denies greater economic security to not just these workers, but also millions of others earning above the minimum who would still benefit from a higher minimum wage.

Alaska and Missouri’s successful minimum wage ballot measures demonstrate the important role states continue to play in lifting wages for low-wage workers while the federal minimum stagnates. The progress of the movement for a $15 minimum wage will soon reach almost half of U.S workers, but without changes in state or federal policy, workers in 20 states will continue to be left behind.

Note

¹. Virginia could also increase its minimum wage to $15 an hour by 2026 but requires reauthorization by the state legislature and governor. If Virginia does follow through with its scheduled increase, more than half of U.S. workers will live in a state at or above $15 an hour in 2027.