BELOW SUPERNAV drop zone ⇩

Map shows states with most low-wage workers hit hard by record inflation

FILE – In this Wednesday, April 3, 2019, file photo, a tip box is filled with dollar bills, in New York. (AP Photo/Mark Lennihan, File)

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

ovp test

mLife Diagnostics LLC: Oral Fluid Drug Testing

Male shot by female at Shreveport apartment

Class to create biodiverse backyard

Rules for outbursts at Caddo School Board Meeting

maylen

https://digital-stage.newsnationnow.com/

AUTO TEST CUSTOM HTML 20241114185800

AUTO TEST CUSTOM HTML 20241115200405

AUTO TEST CUSTOM HTML 20241118165728

AUTO TEST CUSTOM HTML 20241118184948

(NEXSTAR) – As inflation grows, and everything from gas to food to housing gets more expensive, your income effectively shrinks as your spending power weakens. It’s especially troubling for low-wage workers trying to get by on minimum wage or living below the poverty line.

Many states hiked their minimum wages in 2022, but the minimum wage isn’t rising fast enough to keep up with the increased cost of living. Several states still have their minimum wages set at the federal minimum of $7.25, which was last increased in 2009.

According to the Economic Policy Institute, the spending power of that $7.25/hour has already dropped dramatically since 2009. In 2021 dollars, $7.25 was more like $9.17 per hour in 2009. (The inflation that’s happened since June of last year has made the difference even more dramatic.)

Workers whose wages aren’t increasing this year are hit hardest by the rising price of goods. Oxfam America created an interactive map that shows where low-wage workers are concentrated in the U.S. On the map, the states shaded in darker red have the most workers making less than $15/hour.

You can also see how race, age, sex and family status affect people’s wages state-by-state.

Last week, the government reported that surging gas, food and housing costs pushed consumer prices up 7.9% in February from a year earlier — the sharpest spike since 1982.

Prices are rising at the fastest rate in generations, and have already proven many economists wrong by continuing to rise far longer than they expected last year. If households across the country start to see high, persistent inflation as the new normal, they could ramp up their purchases in hopes of buying ahead of further price increases. That would make the expectation of higher prices itself another trigger for high inflation.

Surveys say that’s not the case yet, but worrying signs are growing as gasoline costs hit records on the back of surging oil prices.

The Associated Press contributed to this report.

U.S.

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

AUTO TEST CUSTOM HTML 20241119133138

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Clear

la

48°F Clear Feels like 48°
Wind
1 mph NNW
Humidity
52%
Sunrise
Sunset

Tonight

Clear to partly cloudy. Low 47F. Winds light and variable.
47°F Clear to partly cloudy. Low 47F. Winds light and variable.
Wind
2 mph N
Precip
6%
Sunset
Moon Phase
Waning Gibbous