The United States economy is currently facing a period of high inflation, which has left many families struggling to keep up with rising costs. The pandemic and accompanying period of economic recovery have highlighted the widening wealth gap in America.This led to increased labor movement activity and actions by many large corporations to raise their wage floor. As a result, minimum wage rises in a dozen states will be higher than typical, based on a published report by CNN on December 31, 2022.
This will account for more than $5 billion in pay boosts for an estimated 8.4 million workers, the Economic Policy Institute estimates. Additionally, nearly 30 cities and counties across the US will also increase their minimum wage, according to the EPI.
The pandemic has caused a shift in the labor market, resulting in a shortage of workers and an imbalance of supply and demand. Employers have raised average hourly wages to recruit and retain staff, particularly in the retail and dining sectors. However, many workers’ pay has not kept up with rising prices, leading to financial difficulties, according to CNN.
A dozen states are Increasing their minimum wages due to high inflation and a growing wealth gap in the US. The pandemic and economic recovery have highlighted poor working conditions and low pay, leading to an increase in labor movement activity. The wage increases may provide relief for workers, but it is uncertain if they will be sufficient to address the wealth gap and improve the overall economy.