Who Works Minimum Wage Jobs?

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Who Works Minimum Wage Jobs (U.S.)

• Federal minimum wage is $7.25 per hour (since 2009).

• Nationally, 2,992,000 workers are at or below minimum wage.

• Employers may pay tipped employees a minimum of $2.13, as long at the tips raise the hourly earnings to $7.25.• Tip credit wage has been $2.13 since 1996.• Oregon does not allow for a tip credit.• Seven states do not allow tip credits, including

California, Washington, and Nevada.

• 1,737,000 workers have wages below minimum wage due to the tip credit and other provisions .• That’s 58% of workers at or below minimum wage.2

Who Works Minimum Wage Jobs (U.S.)

• Minimum wage workers are more likely to be women• 63% are women (50% of all workers)• 37% are men (50% of all workers)

• Women are more likely to be at or below minimum wage• 4% of all workers earn minimum wage

• 5% of employed women• 3% of employed men

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Who Works Minimum Wage Jobs (U.S.)

• The median age of minimum wage workers is about 25 years.

• Minimum wage workers tend to be young.• 21% are 16-19 years (5% of all workers are 16-19

years)• 27% are 20-24 years (14% of all workers are 20-

24 years)• 22% are 25-34 years (23% of all workers are 25-

34 years)• 11% are 35-44 years (19% of all workers are 35 to

44 years)• 9% are 45-54 years (20% of all workers are 45-54

years)• 7% are 55-64 years (14% of all workers are 55-64

years)• 3% are 65 years and older (4% of all workers are

65+ years)

• Younger workers more likely to be at or below minimum wage.• 15% of employed teens 16-19 years• 7% of employed young adults 20-24 years• 3% of employed ages 25 years and older

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Median age of minimum wage workers is about 26 years for women and about 24 years for men.

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Workers at or Below Minimum Wage by Age and Gender,United States, 2014

Source: Bureau of Labor Statistics, Current Population Survey

Women

Men

Who Works Minimum Wage Jobs (U.S.)

• There is little difference by race and ethnicity in the percentage of workers at or below the federal minimum wage.• 4% of White and Black workers earn minimum

wage• 3% of Asian and Hispanic or Latino workers earn

minimum wage

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Who Works Minimum Wage Jobs (U.S.)

• Minimum wage workers tend to be part-time (usually work fewer than 35 hours per week).• 65% are part-time (27% of all workers)• 35% are full-time (73% of all workers)

• Part-time workers are more likely to be minimum wage• 10% of all part-time workers.• 2% of all full-time workers.

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Who Works Minimum Wage Jobs (U.S.)

• Minimum wage workers by education (16 years old and older):• 23% have less than high school (12% of all

workers)• 31% high school graduates, no college (34% of all

workers)• 30% some college, no degree (23% of all workers)• 7% associate degree (12% of all workers)• 9% bachelor’s degree or higher (18% of all

workers)

• Those with higher educational attainment are less likely to be at or below minimum wage.• 7% of workers with less than a high school

education• 4% of high school graduates with no college• 5% of those with some college, no degree• 2% of those with an associate degree• 2% of those with a bachelor’s degree

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Who Works Minimum Wage Jobs (U.S.)

• Two out of three workers at or below the minimum wage are in service occupations.

• Half of all minimum wage workers are in food preparation and serving related occupations.• 50% are in food preparation and serving (9% of all

workers)• 14% are in sales and related (10% of all workers)• 7% are in transportation (8% of all workers)• 6% are in personal care and service (4% of all

workers)

• One out of five food preparation and serving workers is at or below the minimum wage.• 21% of food preparation and serving occupations• 6% of personal care and service occupations• 5% of sales and related occupations

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Nick Beleiciks, State Employment EconomistOregon Employment Department

Nick.J.Beleiciks@Oregon.gov (503) 947-1267