2021 has been a year of pay gains for low-wage workers in the US.
Employees in the leisure and hospitality industry saw the biggest increases, with average hourly wages for hotels and restaurant workers 13.4% higher in October than the same month last year, according to the most recent Bureau of Labor Statistics data. Workers in transportation and warehousing saw a 10.4% increase, the next biggest gain.
The wage increases have been more concentrated among the lowest paid employees than higher-wage ones. From January to November, wages in personal services—which includes employees in restaurants, bars, spas, salons—rose from an average of $16 to $19 per hour, up 18%, according to data from Gusto, a payroll company. Meanwhile, wages in professional services—which includes workers in finance, accounting, legal, technology—increased 4%, from $24 to $25.
The gains in low-wage jobs have outpaced inflation, which is up 6.8% year-over-year. That said, higher inflation has eroded the wages of the average US worker.
Throughout the pandemic, a slew of low-wage employers, from Chipotle to Starbucks, announced unprecedented increases to their minimum pay. In March, Chipotle announced it would raise average hourly wages to $15 an hour while Starbucks announced a similar minimum. While the $15 federal minimum wage amendment may have failed to pass in the US Senate, employers raising wages to at least $15 an hour has become more of a norm. The average hourly earnings of non-managerial...
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