Characteristics of Minimum Wage Workers: 2010

In 2010, 72.9 million American workers age 16 and over were paid at hourly rates, representing 58.8 percent of all wage and salary workers.1 Among those paid by the hour, 1.8 million earned exactly the prevailing Federal minimum wage of $7.25 per hour. About 2.5 million had wages below the minimum.2 Together, these 4.4 million workers with wages at or below the Federal minimum made up 6.0 percent of all hourly-paid workers. Tables 1-10 present data on a wide array of demographic and socioeconomic characteristics for hourly-paid workers earning at or below the Federal minimum wage. The following are some highlights from the 2010 data.

  • Minimum wage workers tend to be young. Although workers under age 25 represented only about one-fifth of hourly-paid workers, they made up about half of those paid the Federal minimum wage or less. Among employed teenagers paid by the hour, about 25 percent earned the minimum wage or less, compared with about 4 percent of workers age 25 and over. (See table 1 and table 7.)

  • About 7 percent of women paid hourly rates had wages at or below the prevailing Federal minimum, compared with about 5 percent of men. (See table 1.)

  • The percentage of workers earning the minimum wage did not vary much across the major race and ethnicity groups. About 6 percent of White hourly-paid workers earned the Federal minimum wage or less, compared with about 7 percent of Blacks and about 5 percent of Asians. Among hourly-paid workers with Hispanic ethnicity, about 6 percent earned the minimum wage or less. (See table 1.)

  • Among hourly-paid workers age 16 and over, about 13 percent of those who had less than a high school diploma earned the Federal minimum wage or less, compared with about 5 percent of those who had a high school diploma (with no college) and about 3 percent of college graduates. (See table 6.)

  • Never-married workers, who tend to be young, were more likely than married workers to earn the Federal minimum wage or less (about 11 percent versus about 3 percent). (See table 8.)

  • Part-time workers (persons who usually work less than 35 hours per week) were more likely than full-time workers to be paid the Federal minimum wage or less (about 14 percent versus about 3 percent). (See table 1 and table 9.)

  • By major occupational group, the highest proportion of workers earning at or below the Federal minimum wage was in service occupations, at about 14 percent. About 6 in 10 workers earning the minimum wage or less in 2010 were employed in service occupations, mostly in food preparation and serving related jobs. (See table 4.)

  • The industry with the highest proportion of workers with hourly wages at or below the Federal minimum wage was leisure and hospitality (23 percent). Nearly one-half of all workers paid at or below the Federal minimum wage were employed in this industry, primarily in restaurants and other food services. For many of these workers, tips and commissions supplement the hourly wages received. (See table 5.)

  • The States with the highest proportions of hourly-paid workers earning at or below the Federal minimum wage included Mississippi, Texas, Alabama, and West Virginia (between 9 and 10 percent). The States with the lowest percentage of workers earning at or below the Federal minimum wage included Washington, Oregon, Alaska, and California, all at or below 2 percent. It should be noted that some States have minimum wage laws establishing standards that exceed the Federal minimum wage. (See table 2 and table 3.)

  • The proportion of hourly-paid workers earning the prevailing Federal minimum wage or less rose from 4.9 percent in 2009 to 6.0 percent in 2010. This remains well below the figure of 13.4 percent in 1979, when data were first collected on a regular basis. (See table 10.)

Source: U.S. Department of Labor, Bureau of Labor Statistics (BLS). These data on minimum wage earners are derived from the Current Population Survey (CPS), a monthly nationwide survey of households. Data in this summary are 2010 annual averages.

1 Data are for wage and salary workers age 16 and over and refer to earnings on a person's sole or principal job. All self-employed persons are excluded whether or not their businesses are incorporated.

2 The presence of a sizable number of workers with wages below the Federal minimum does not necessarily indicate violations of the Fair Labor Standards Act, as there are exemptions to the minimum wage provisions of the law. The estimates of the numbers of minimum and subminimum wage workers presented in the accompanying tables pertain to workers paid at hourly rates; salaried and other non-hourly workers are excluded. As such, the actual number of workers with earnings at or below the prevailing Federal minimum is undoubtedly understated. Research has shown that a relatively small number and share of salaried workers and others not paid by the hour have earnings that, when translated into hourly rates, are at or below the minimum wage. However, BLS does not routinely estimate hourly earnings for non-hourly workers because of data concerns that arise in producing these estimates.


Characteristics of Minimum Wage Workers: 2010, Tables 1 - 10

Characteristics of Minimum Wage Workers: 2010 (PDF)


 

Last Modified Date: September 12, 2016