Oxfam: Millions of US Workers Earn Subminimum Wage

For 15 years, the US federal minimum wage has stagnated at $7.25/hour, trapping millions of workers in poverty. A new report by Oxfam America visualizes the concentration of people earning less than $17/hour, exposing a crisis affecting workers across the country, especially in Southern states like Texas, and disproportionately impacting people of color.

According to the Living Wage Calculator, developed by MIT, the living wage for a single adult in Texas is $20.92/hour, yet 4,528,976 Texans earn less than $17/hour. The report argues federal inaction on minimum wage hurts workers, with
Austin declaring a living wage of $20.80.

Demographic Disparity

The demographics of low-wage workers are alarming. In Texas, 40.5% of Hispanic workers, 34.2% of Black workers, and 28.2% of white workers earn less than $17/hour. Gender disparities are stark, with 36.1% of women and 24.8% of men in the state earning less than $17.

"Women (especially Black and Latina women) and people of color are disproportionately represented among the low-wage workforce, meaning they’re more likely to be trapped in poverty."

Solutions

The report urges policymakers to address wage inequities and reduce disparities. It suggests states and localities take the lead in raising minimum wages and calls on Congress to pass the Raise the Wage Act to increase the federal minimum wage and end exclusions in national laws.