Characteristics of minimum wage workers, 2015
In 2015, 78.2 million workers age 16 and older in the United States were paid at hourly rates, representing 58.5 percent of all wage and salary workers. Among those paid by the hour, 870,000 workers earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum. Together, these 2.6 million workers with wages at or below the federal minimum made up 3.3 percent of all hourly paid workers.
The percentage of hourly paid workers earning the prevailing federal minimum wage or less declined from 3.9 percent in 2014 to 3.3 percent in 2015. This remains well below the percentage of 13.4 recorded in 1979, when data for hourly-paid were first collected on a regular basis. (
See table 10.)
This report presents highlights and statistical tables describing workers who earned at or below the federal minimum wage in 2015. The data are obtained from the Current Population Survey (CPS), a national monthly survey of approximately 60,000 households conducted by the U.S. Census Bureau for the U.S. Bureau of Labor Statistics (BLS). Information on earnings is collected from one-fourth of the CPS sample each month.
The CPS does not include questions on whether workers are covered by the minimum wage provisions of the federal Fair Labor Standards Act (FLSA) or by individual state or local minimum wage laws. The estimates of workers paid at or below the federal minimum wage are based solely on the hourly wage they report, which does not include overtime pay, tips, or commissions. See the accompanying technical notes section for more information, including a description of the source of the data and an explanation of the concepts and definitions used in this report.
Highlights
The following are highlights from the 2015 data:
Age. Minimum wage workers tend to be young. Although workers under age 25 represented only about one-fifth of hourly paid workers, they made up about half of those paid the federal minimum wage or less. Among employed teenagers (ages 16 to 19) paid by the hour, about 11 percent earned the minimum wage or less, compared with about 2 percent of workers age 25 and older. (See
tables 1 and
7.)
Gender. Among workers who were paid hourly rates in 2015, about 4 percent of women and about 3 percent of men had wages at or below the prevailing federal minimum. (
See table 1.)
Race and Hispanic or Latino ethnicity. The major race and ethnicity groups had similar percentages of hourly workers paid wages at or below the federal minimum. About 3 percent of White, Asian, and Hispanic or Latino workers earned the federal minimum wage or less. Among Black workers, the percentage was about 4 percent. (
See table 1.)
Education. Among hourly paid workers age 16 and older, about 6 percent of those without a high school diploma earned the federal minimum wage or less, compared with about 3 percent of those who had a high school diploma (with no college), 3 percent of those with some college or an associate degree, and about 2 percent of college graduates. (
See table 6.)
Marital status. Of those paid an hourly wage, never-married workers, who tend to be young, were more likely (5 percent) than married workers (2 percent) to earn the federal minimum wage or less. (
See table 8.)
Full- and part-time status. About 7 percent of part-time workers (those who usually work fewer than 35 hours per week) were paid at or below the federal minimum wage, compared with about 2 percent of full-time workers. (See
tables 1 and
9.)
Occupation. Among major occupational groups, the highest percentage of hourly paid workers earning at or below the federal minimum wage was in service occupations, at about 9 percent. Almost two-thirds of workers earning the minimum wage or less in 2015 were employed in service occupations, mostly in food preparation and serving related jobs. (
See table 4.)
Industry. The industry with the highest percentage of workers earning hourly wages at or below the federal minimum wage was leisure and hospitality (15 percent). Nearly three-fifths of all workers paid at or below the federal minimum wage were employed in this industry, the vast majority in restaurants and other food services. For many of these workers, tips may supplement the hourly wages received. (
See table 5.)
State of residence. The states with the highest percentages of hourly paid workers earning at or below the federal minimum wage were in the South: Alabama, Louisiana, Mississippi, and Virginia (all were about 6 percent). The states with the lowest percentages of hourly paid workers earning at or below the federal minimum wage were in the West: Alaska, California, Oregon, and Washington (all were about 1 percent). It should be noted that some states have laws establishing higher minimum wage rates than the federal minimum wage. (See
tables 2 and
3.)