In a Hot Job Market, the Minimum Wage Becomes an Afterthought

By John Mercury August 23, 2023

Other economists have the opposite concern: that workers in states where the minimum wage remains $7.25 could see their recent gains evaporate when they no longer have the leverage to demand more.

“It’s as tenuous as it gets,” said Kathryn Anne Edwards, a labor economist and policy consultant. “The labor market has gained ground, but policy has not cemented that territory.”

Despite the strong labor market, many workers say they barely get by.

KaSondra Wood has spent much of her adult life working for the minimum wage, from the army depot where she held her first job, earning $5.15 an hour, to the Little Caesars where she made $7.25 as recently as last year.

But not anymore: This summer, she started a job cleaning rooms at a local hotel, earning $12 an hour. Even in Oneonta, Ala., a rural area with few job opportunities, employers know better than to try hiring at the minimum wage.

“They wouldn’t advertise for it, knowing they wouldn’t get anyone in there,” she said.

But Ms. Wood, 38, hardly feels that she is getting ahead. The hotel is a 45-minute drive from her home, so gas eats up much of her paycheck, even though she car-pools with her mother. Groceries keep getting more expensive.

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