September 05, 2005
Happy Labor Day Americans!
Unhappy Anniversary
Federal Minimum Wage Remains Unchanged for Eighth Straight Year, Falls to 56-Year Low Relative to the Average Wage
September 1, 2005 marks an unhappy anniversary for minimum-wage workers. The federal minimum wage has remained at $5.15 an hour since September 1, 1997. So for eight straight years the value of the minimum wage has eroded due to the effects of inflation, and the wage standard has fallen further behind the wages of other workers.
The minimum wage now equals only 32 percent of the average wage for private sector, nonsupervisory workers. This is the lowest share since 1949.
Over the past eight years, the purchasing power of the minimum wage has deteriorated by 17 percent. After adjusting for inflation, the value of the minimum wage is at its second lowest level since 1955.
Since the inception of the minimum wage, there has been only one other period (from 1981 to 1990) in which the minimum wage has remained unchanged for more than eight years.
Coal breaker boys.
CREATED/PUBLISHED [between 1890 and 1910]
[photo via American Memory]