Minimum wages increased across 19 U.S. states and 47 cities and counties on January 1. A whopping number of more than 8.3 million workers are set to benefit from these hikes.
The largest increase is in Hawaii, where the minimum wage increased by $2 to $16. Workers in Minnesota will see January 1’s smallest minimum wage increase, going up by 28 cents to $11.41. Other states, both red and blue, that upped their minimums include Arizona, California, Colorado, Connecticut, Maine, Michigan, Missouri, Montana, Nebraska, New Jersey, Ohio, Rhode Island, South Dakota, Vermont, and Virginia.
Of the more than 8.3 million workers set to benefit from these states’ minimum wage hikes, several demographics will be most affected, per the Economic Policy Institute. Women, who make up nearly 60% of the minimum wage workforce of the affected states, will see the biggest change. Then, Black and Latino workers will be affected most, as they disproportionately comprise the workforce. 10.7% of affected workers are Black, compared to being 8.7% of these states’ workforce. 38.3% affected workers are Latino, despite being 19.8% of these states’ workforce.
These hikes come at a pivotal time. The economy is buckling under a handful of pressures, and employment is suffering as a result. 2026 is preceded by a year with the most layoffs since the pandemic, rising unemployment, inflation, and business’ existential AI crisis. “Minimum wage increases are an essential tool for putting money in workers’ pockets,” especially right now, according to the EPI.
While these minimum wage hikes — which often happen at the start of the year — make a difference in helping workers, these wages are often still behind the living wage for a single adult in their given city or state. Around 20 states, however, still pay the federal minimum wage, which remains at a meager $7.25 per hour, unchanged since 2009.
As of 2026, it’s the first time more workers are living in states with a minimum wage at $15 or more, compared to states paying the federal minimum wage.
“Research has consistently shown that increasing the minimum wage remains a powerful tool for making the economy more equitable without causing job losses,” the EPI added. “The affordability crisis underlines how essential it is for federal, state, and local policymakers to take action so that workers are not left further behind, but lawmakers have taken relatively little new action on minimum wage policy in recent years.”
The latest round of hikes will give more than 8.3 minimum wage workers a small boost, but legislators still have work to do when it comes to protecting and growing workers’ pay.