Oxfam: Almost one-third of US workers make less than $15 an hour

Getty Images

Nearly a third of all U.S. workers make less than $15 an hour, and women, Black and Hispanic workers are significantly more likely to earn low wages than white men, according to new research by Oxfam.

A report from the organization released Monday found that 31.9 percent of the U.S. workforce makes sub-$15 an hour wages, with broad racial, gender and geographic disparities that closely correlate to state-level policies.

Nationally, the report found that 40 percent of working women earn less than $15 an hour, compared to 25 percent of men in the workforce.

Racial and ethnic disparities are similarly striking: 26 percent of white workers make less than $15 an hour, compared to 46 percent of Hispanic workers and 47 percent of Black workers.

More than half of all working women of color make less than $15 an hour, according to the report.

Geographic differences are largely determined by state-level labor laws, as places that have enacted high minimum wage laws consistently have the lowest proportion of workers earning below-$15 wages.

Washington, D.C., the only jurisdiction whose minimum wage currently tops $15 an hour, leads in all categories, with only 9 percent of its workforce earning under $15, including 13 percent of Black workers and 15 percent of Hispanic workers.

While only 12 percent of women in the District of Columbia make less than $15 an hour, 17 percent of working women of color earn salaries below that benchmark.

Washington state and California round out the top three in all categories; Washington’s minimum wage is currently $13.69 per hour, and California’s is $13, according to the Department of Labor.

The jurisdiction with the highest number of low-earning workers is Puerto Rico, where 76 percent of all workers make less than $15 an hour.

A majority of Puerto Rican workers are Hispanic, although those who identify as white are less likely to earn below-$15 wages; nearly 67 percent of white Puerto Ricans still make less than $15 an hour.

While the Caribbean territory does not have large disparities in sub-$15 wages for Hispanics and women, a whopping 92 percent of Black Puerto Ricans and 89 percent of Indigenous Puerto Ricans earn less than $15 an hour.

Puerto Rico is joined at the bottom of the list by two of the poorest states in the union, Mississippi, where 45 percent of all workers make less than $15 an hour, and New Mexico, where 44 percent of workers fail to meet that benchmark.

Mississippi, which has no statewide minimum wage and adheres to the federal $7.25 per hour rate, also comes in second-to-last in nearly all categories of wage inequality measured by Oxfam.

While all Mississippians are more likely to make under $15, 55 percent of women in the state’s workforce earn less, as do 63 percent of Black workers in the state, and 70 percent of working women of color.

Mississippi has a relatively small Hispanic workforce, of whom 59 percent earn less than $15 an hour.

In absolute terms, Texas has the largest workforce earning less than $15, with nearly 5.7 million workers below the benchmark. In Florida, nearly 4.5 million workers earn less than $15 an hour.

California, the country’s most populous state, has 3.4 million workers who earn less than $15, and a handful of states, including New York, Pennsylvania, Ohio, Illinois, Georgia, Michigan and North Carolina each have around 2 million workers at a below-$15 salary level.

The Oxfam report advocates for the Raise the Wage Act, a bill proposed by Rep. Bobby Scott (D-Va.) last year that would increase the federal minimum wage, including for tipped workers.

The bill currently has 201 Democratic sponsors in the House.

The Oxfam report also rebuts a common argument against raising the minimum wage, that a low one allows teenage workers access to on-the-job training.

According to the report, 89 percent of U.S. workers earning less than $15 an hour are at least 20 years old, and 19 percent of workers over age 55 earn less than $15 an hour.

The report also found that 11.2 million single working parents, 57 percent of that demographic, earn less than $15 an hour.

Tags $15 minimum wage Bobby Scott Fight for $15 Minimum wage Oxfam Raise the Wage Act

Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Regular the hill posts

Main Area Top ↴

More Business News

See All
Main Area Bottom ↴

Top Stories

See All

Most Popular

Load more