Half of U.S. states will raise their minimum wage in 2021

The transfer towards a $15 minimum wage gained extra floor in 2020 by means of the electoral victory of President-elect Joe Biden and yet one more state voting in favor of an eventual $15 pay ground.

Next 12 months, half of U.S. states will raise their minimum wage, up from 21 in 2020. All however 5 of these states — Connecticut, Florida, Nevada, Oregon and Virginia — will hike their hourly minimum on Friday.

And the federal minimum wage, which hasn't recorded a rise in greater than a decade, may lastly get a lift, affecting hundreds of thousands of staff starting from restaurant cooks to janitors. Biden has pledged to spice up it to $15 an hour and eradicate the tipped minimum wage, which is the low base pay given to staff who make most of their compensation from suggestions. He has additionally mentioned he would index minimum wage to match inflation. All three measures are in line with a invoice handed by the House in 2019.

Critics say {that a} increased minimum wage hurts small companies and causes job losses — and would add much more stress throughout an financial disaster brought on by the coronavirus pandemic. But this 12 months's occasions have additionally raised new consciousness concerning the essential roles held by hourly staff, in addition to their low wages. An evaluation by employment web site Snagajob discovered that three-quarters of hourly staff in the U.S. had been higher off sticking to unemployment advantages as a substitute of discovering a brand new place when the federal complement was $300 per week.

"I'm not sure if the pandemic itself affects the likelihood of a minimum wage increase because it's a fundamentally political decision," mentioned Daniel Zhao, senior economist at jobs web site Glassdoor. "I think that the pressure has been rising over the last few years."

Whether Biden will get the prospect to raise the minimum wage will possible come right down to runoff election outcomes in Georgia, the place each Senate seats are up for grabs on Tuesday.

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There's rising proof that voters on each side of the aisle assist a $15 minimum wage. In November, Florida grew to become the eighth state to decide on to part in a pay ground at that price, due to a poll referendum accepted by 60% of voter in an election in which Donald Trump received.

Even if a brand new federal minimum wage doesn't get handed, it's possible that extra states will observe Florida's instance. Zhao mentioned activists have turned most of their consideration to altering the pay ground on the native stage, which is a better aim than a brand new nationwide mandate.

According to Snagajob CEO Mathieu Stevenson, states are additionally trying on the areas that handed a $15 minimum wage years earlier to grasp its full impression. Seattle was the primary U.S. metropolis to raise the pay ground to that price in 2014 after a coordinated push from fast-food staff. Other cities, together with San Francisco, New York and Washington, have adopted.

"What we continue to hear on the ground is people have been looking to what are the early results from D.C. and other markets that implemented the $15 minimum wage," Stevenson mentioned. "As people get more comfortable with the results and the impact it's had on the economy, I think we'll continue to see that at the state level."

More corporations have additionally stepped as much as raise their inside pay flooring to maintain up with competitors and assist with turnover. Bank of America and Amazon are among the many employers which have already been paying their staff greater than $15 an hour.

The widespread unemployment sparked by the pandemic abruptly stopped the wage progress skilled by hourly staff in 2019, however some of the nation's largest corporations introduced increased minimum wages as they tried to recruit new staff.

After climbing barista wages by 10%, Starbucks mentioned it will raise its minimum wage to $15 an hour over the following three years. Walmart, the nation's largest personal employer, raised its hourly price for deli and bakery staff from $11 to $15, whereas hourly management roles now obtain $18 to $21 per hour.

Zhao predicts the upward wage progress of 2019 may return in the second half of 2021 if unemployed staff battle to seek out new jobs or resolve to decide out of working. He cited a rising concern about ladies who dropped out of the workforce throughout the pandemic as a result of of baby care.

"There is an open question as to how difficult it will be to get those workers to the labor force," Zhao mentioned. "If it's very difficult to get those workers back, it would put upward pressure on wages, especially for lower income workers and low-wage industries like food service."

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based mostly on web site supplies www.cnbc.com

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