Americans in roughly 20 states can expect the minimum wage to increase in 2025, and analysts say it could have major impact on the labor market and consumers.
The states voted to increase wage requirements to fight inflation as workers’ salaries didn’t reflect the current cost of living.
“The most fascinating element to changing minimum wage laws is the sheer amount occurring on January 1, 2025,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“Some of the increases are targeted to certain jurisdictions—like West Hollywood or St. Paul, Minnesota—while others are tied to in-need professions like health care workers. Not only is it mostly good news, some of the state and city increases should encourage the federal government to take similar action.”
The minimum wage increases span from $0.25 in Montana to $2.15 in Michigan. Michigan will see two wage hikes, on January 1 and February 21.
Delaware, Illinois and Rhode Island decided to bump …