These 5 States Have the Most Low-Wage Workers
While lower-wage workers have enjoyed some bumps in pay since the start of the pandemic, many are struggling to pay bills and feed their families amid rising prices and inflation. After all, those wage gains came because of tight labor markets and some state-level increases, and they came after decades of stagnant pay growth.
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Just how many workers in the United States are considered low-wage employees? According to the Economic Policy Institute, 31 million people in the U.S. earn under $17 per hour. That’s about 21% of the workforce.
The amount is important because of the Raise the Wage Act of 2023. That bill, introduced last July, calls for gradually increasing the federal hourly minimum wage to $17 by 2028. That would be a significant increase for lots of low-wage workers.
To put that in context, $17 per hour amounts to $35,360 per year, assuming a 40-hour work week.
Here’s a look at the states with the most low-wage workers, along with those states’ costs of living.
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Mississippi
Economic Policy Institute data shows that Mississippi has the highest share (41%) of workers earning less than $17 per hour.
Because Mississippi has no state-mandated minimum wage, employers need only pay the federal minimum, which is $7.25 per hour, according to Visual Capitalist. That amounts to $15,600 per year for a 40-hour work week.
Mississippi’s annual cost of living stands at $32,336 per year, according to Forbes.
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Louisiana
Following Mississippi is Louisiana, where 37% of the workforce earns low wages. That’s about 647,000 workers. Just like with Mississippi, Louisiana has no state minimum wage, so employees are subject to the $7.50 federal minimum.
Louisiana has seen some of the slowest average wage growth (1.7%) in the country since the start of the pandemic, Visual Capitalist noted.
With a $35,576 annual cost of living, Louisiana ranks 39th out of the 50 states, according to Forbes.
Oklahoma
Just behind Louisiana is Oklahoma, where 36% of the workforce, or 608,000 workers, earn under $17 per hour.
At $33,966, Oklahoma’s cost of living is the country’s 47th lowest.
West Virginia
Another state with a higher percentage of low-wage workers is West Virginia. Here, 35% of the workforce earns under $17 per hour. That means 238,000 workers. West Virginia’s cost of living is $34,861, which ranks 43rd out of the 50 states.
Arkansas
Rounding out the list is Arkansas, where 34% of the workforce earns under $17 per hour. That’s about 412,000 workers. Arkansas comes right behind Mississippi when it comes to a low cost of living. The average cost of living here is $32,979.
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