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The federal minimum wage has basically become an outdated relic: It last went up to $7.25 on July 24, 2009 — 15 years ago.
Why it matters: Though very few people actually earn $7.25 an hour or less, the federal standard has ripple effects for all hourly workers — helping to keep pay low for millions.
The big picture: Look at the chart. In inflation-adjusted terms, the federal minimum wage is worth less now than at any time since 1949.
Still, workers have managed to get raises without the federal standard moving. In recent years as the labor market has been tight, employers have been forced to pay more for hourly workers and an increasing number of states have set higher wage floors.
Stunning stat: The number of workers earning $7.25 or less fell by nearly half over the past four years, to 869,000 in 2023 from 1.6 million in 2019, per the Bureau of Labor Statistics.