A up-to-date report shows that Philadelphia and Pittsburgh are among U.S. cities where the purchasing power of the minimum wage has declined due to rising prices and inflation.
Despite repeated legislative pressure to raise it, Pennsylvania’s statutory minimum wage of $7.25 an hour remains tied to the federal minimum wage, which has not been raised since 2009. Meanwhile, Pennsylvania’s five neighboring states – Delaware, Maryland, New Jersey, New York and Ohio – stayed they intend to raise the minimum wage this year.
Analysts on a financial literacy website Smart resources 79th largest US cities according to what the minimum wage is worth after factoring in the cost of living in each.
It’s worth noting that some U.S. cities have set their own minimum wages, but purchasing power is subject to the same economic forces as in other locations, according to the analysis.
Below, we look at the cities where the minimum wage goes the furthest and where it doesn’t, and how Pennsylvania’s largest cities are faring.
With a cost of living 8.4% higher than the national average, the minimum wage in Philadelphia is $6.69 an hour after taking into account the city’s cost of living, according to data Smart resources analysis.
In Pittsburgh, where the cost of living is lower, the minimum wage is nominally less than $7.2 an hour, according to analysts. Smart resources analysis.
As was the case with his Democrat predecessor Tomek Wilkup-to-date Democrat from Pennsylvania Governor Josh Shapiro called for raising the state minimum wage to “at least $15 an hour — period.”
“Then we need to make sure we give people the skills they need to do the jobs of today and tomorrow,” he added. Shapiro he said during the fall gubernatorial campaign against Republicans Doug Mastriano.
A narrow partisan advantage in the House means the chances of passing a raise wage bill may be greater. However, any bill is likely to stall in the Republican-controlled state Senate.
Some other highlights from SmartAsset’s analysis:
- “The minimum wage is the highest in Denver. After a January 2023 enhance, the minimum wage in Colorado’s capital is now $17.29 an hour, which ranks second in the entire study. However, the residents of this city get the most bang for their buck. The city ranks first for the highest minimum real minimum wage, even though the cost of living is 22nd.
- “Minimum wage workers in Seattle earn the most. No city in our study has a higher legal minimum wage than Seattle, where minimum wage workers earn $18.69 an hour. However, Seattle is also one of the cities with the highest cost of living included in our study. Once these costs are taken into account, the real minimum wage in Seattle drops to $12.51.
- “Less than a quarter of cities have a minimum wage of $15. Only 18 of the 79 cities in our study have a legal minimum wage of $15 or more. Meanwhile, 30 cities have a default minimum wage of $7.25, which includes the four cities at the bottom of our rankings,” and
- “The cost of living in Orlando closely matches the national average. Although Orlando is best known as the headquarters Walt Disney Worldthe cost of living in the city is only 0.2% higher than the national average. As a result, the city’s $11 minimum wage is worth $10.98 after cost of living is taken into account,” the analysis said.
To reach your conclusions, SmartAsset analysts “used the minimum wage as of January 1, 2023. Where cities distinguish between minimum wage rates for compact and immense employers, we included the minimum wage rate required for immense employers.
“Additionally, for cities and states that distinguish between positions that offer health benefits and those that do not, we have applied the minimum wage to positions that do not provide qualifying health benefits,” they concluded.
