unemployment

Minimum Wage in America: How Many People are Earning $7.25 an Hour?

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President Biden Proposed raising the Federal Minimum Wage to $15.00/hour as part of his $1.9 billion stimulus plan.

Americans have debated where to set the federal minimum wage for decades. President Joe Biden’s proposed stimulus plan aims to increase the federal minimum to $15 an hour, more than doubling the current wage of $7.25. Currently, wages vary by state, with some cities mandating more than double the federal minimum and other states with requirements below $7.25. Employees covered by both state and federal minimum wage laws are entitled to the higher of the two minimums.

How many people earn the federal minimum wage?
According to the Bureau of Labor Statistics (BLS) 1.6 million workers, or 1.9% of all hourly paid, non-self-employed workers, earned wages at or below the federal minimum wage in 2019. That year, 82.3 million people were paid hourly rates, making up 58.1% of all wage and salary workers in the United States.

Fewer Americans today make the federal minimum wage or less.
In 1980, when the federal minimum wage was $3.10 ($9.86 in 2019 dollars), 13% of hourly workers earned the federal minimum wage or less. Today, only 1.9% of hourly workers do. The number of federal minimum wage workers has decreased from 7.7 million in 1980 to 1.6 million in 2019. This is partly due to states establishing higher minimum wages than the federal level.

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$15 minimum wage an anchor on struggling businesses

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President Joe Biden has proposed a nationwide $15 minimum wage as part of his so-called “American Rescue Plan.” Talk about bad timing: Raising labor prices on businesses that are struggling to stay afloat is like throwing them a load of bricks instead of a life preserver.

State and local governments raising their minimum wages is one thing, but to more than double the federal minimum, from $7.25 to $15 per hour?

Nearly 1 in every 5 restaurants permanently closed their doors in 2020 as 30 large retail and restaurant companies filed for bankruptcy.

Meanwhile, employment in food services (restaurants and bars) fell 19% in 2020 as retail clothing jobs dropped 24% and accommodations (hotels) jobs plummeted 32%.

Although very few people — only about 1% of all workers and 0.1% of single parents — make the $7.25 minimum wage, a good portion of restaurant, retail and hotel jobs pay less than $15 per hour.

No one would suggest raising the rent on households who are months behind on their payments, so how could raising labor prices help businesses?

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Florida unemployment rate holds steady, as Orlando tops metro areas for joblessness

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Florida’s unemployment rate was unchanged from October at 6.4%, but Orlando recorded the highest number of any metropolitan area in the state at 7.7%.

A report released Friday by the Department of Economic Opportunity shows the continuing powerful effect of the coronavirus pandemic on the state and particularly Central Florida’s tourism-dependent economy.

In all, about 651,000 Floridians were jobless in November, the report says.

In Central Florida, Orange County came in at 8.1% for November, Osceola at 9.7%, Lake at 6.5% and Seminole at 5.7%. Osceola and Orange had the first- and second-highest county rates in the state.

Metro Orlando’s rate topped that of Miami’s, which in previous months had posted the highest percentage of joblessness.

Adrienne Johnston, DEO’s chief of the Bureau of Labor Market Statistics, said seasonal retail hiring was slow this year.

“I think we’re seeing where people are shopping online a little bit more of the season. Businesses did not add as many employees to their payrolls,” Johnson said in a conference call.

The overall U.S. unemployment rate for November was 6.7%.

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Layoffs in Central Florida keep piling up

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In the spring, as the new coronavirus began to spread throughout Central Florida, companies began shedding employees and Congress rushed in to provide some short-term relief.

Not knowing how severe the outbreak would become and how long its grip on the tourism-dependent region would last, executives hoped things would go back to normal soon.

But the layoffs haven’t stopped, and the calls to Congress for more help for the jobless and for the hotels, theme parks and other businesses that employed them have gone unanswered. It’s further evidence of the stark message Florida’s chief economist, Amy Baker, delivered to lawmakers Thursday that Florida tourism will take potentially three years to recover from this crisis.

In August alone, thousands more people were laid off or placed on furlough in Central Florida, mostly from hotels, according to a review of the state’s database.

The Hilton Orlando on Destination Parkway extended furloughs for 605 employees. The Orlando World Center Marriott laid off 601, saying it doesn’t expect occupancy to pick up until 2021. Eight Universal hotels, many of which have closed, furloughed or laid off 2,130 people.

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Central Florida dominates state jobless rate ranks

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Central Florida, a tourism-dependent region walloped by the coronavirus pandemic, hold four of the top seven highest unemployment rates for July, according to state figures.
Osceola and Orange rank first and second, while Polk is fourth and Lake is seventh. Statewide, 11.3% of workers were unemployed. Here’s a look at county-bycounty jobless numbers for the month.

■ Osceola County: 20.2 percent
■ Orange County: 16.1percent
■ Miami-Dade County: 14.2 percent
■ Polk County: 13.2 percent
■ Broward County:13.1percent
■ Hendry County:13 percent
■ Lake County: 12.4 percent
■ Palm Beach County: 11.6 percent
■ Citrus County:11.2 percent
■ St. Lucie County:11percent
■ Hernando County:10.9 percent
■ Putnam County:10.9 percent
■ Hamilton County:10.7 percent
■ Lee County:10.7 percent
■ Seminole County: 10.5 percent
■ Volusia County: 10.5 percent


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