Report on Minimum Wage Increases and Their Alignment with Sustainable Development Goals (SDGs)

Effective July 1, hundreds of thousands of workers across multiple cities and states in the United States will experience increased minimum wages. This development supports several Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 5 (Gender Equality), and SDG 8 (Decent Work and Economic Growth).

Scope and Impact of Minimum Wage Hikes

1. More than 800,000 workers in Alaska, Oregon, and Washington, D.C. will benefit from higher minimum wages.
2. Additional wage increases will affect workers in a dozen cities and counties across California, Illinois, and Maryland.
3. The federal minimum wage remains at $7.25 per hour since 2009, but local and state adjustments address rising living costs.

According to the Economic Policy Institute (EPI), these wage hikes will significantly improve workers’ earnings, with average annual increases ranging from $420 in Oregon to $925 in Alaska. This advancement directly contributes to SDG 1 by reducing poverty and SDG 8 by promoting decent work and economic growth.

Demographic Benefits and Social Equity

• Approximately 58% of workers receiving pay increases are women, advancing SDG 5 on gender equality.
• Black and Hispanic workers will disproportionately benefit, supporting SDG 10 (Reduced Inequalities).

Details of Minimum Wage Increases in Key Regions

Alaska

• Minimum wage increase: $1.09, raising the rate to $13.00 per hour.
• Impact: 6.3% of the workforce (19,400 workers).
• Average annual wage increase: $925.
• Mechanism: Approved through a voter ballot measure.

Washington, D.C.

• Minimum wage increase: $0.45, raising the rate to $17.95 per hour.
• Impact: 7.5% of the workforce (62,200 workers).
• Average annual wage increase: $727.
• Mechanism: Inflation adjustment formula.

Oregon

• Minimum wage increase: $0.35, raising the rate to $15.05 per hour.
• Impact: 9.4% of the workforce (801,700 workers).
• Average annual wage increase: $420.
• Mechanism: Inflation adjustment.

Additional Cities and Counties Implementing Minimum Wage Raises

Alongside Alaska, Oregon, and Washington, D.C., the following 12 cities and counties will increase their minimum wages, contributing to SDG 8 and SDG 10 by fostering economic growth and reducing income disparities:

• Alameda, California: Increase of $0.46 to $17.46
• Berkeley, California: Increase of $0.51 to $19.18
• Emeryville, California: Increase of $0.54 to $19.90
• Fremont, California: Increase of $0.45 to $17.75
• Los Angeles, California: Increase of $0.59 to $17.87
• Los Angeles County, California: Increase of $0.54 to $17.81
• Milpitas, California: Increase of $0.50 to $18.20
• Pasadena, California: Increase of $0.54 to $18.04
• San Francisco, California: Increase of $0.51 to $19.18
• Santa Monica, California: Increase of $0.54 to $17.81
• Chicago, Illinois: Increase of $0.40 to $16.60
• Montgomery County, Maryland: Increase of $0.50 to $17.65

Federal Minimum Wage Legislation Efforts

Despite the federal minimum wage remaining unchanged at $7.25 since 2009, legislative efforts continue to raise it. Recently, Senator Josh Hawley (R-MO), with co-sponsor Senator Peter Welch (D-VT), introduced legislation proposing an increase to $15 per hour. This initiative aligns with SDG 8 by aiming to improve labor conditions and economic growth nationwide.

Conclusion

The upcoming minimum wage increases across various states and municipalities represent significant progress toward achieving multiple Sustainable Development Goals. By raising income levels, these measures contribute to poverty reduction (SDG 1), promote gender equality (SDG 5), reduce inequalities (SDG 10), and foster decent work and economic growth (SDG 8). Continued legislative and policy efforts at federal and local levels remain crucial to sustaining this momentum.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty
   • The article discusses minimum wage increases aimed at improving the income of low-wage workers, which directly relates to reducing poverty.
2. SDG 5: Gender Equality
   • It highlights that 58% of workers benefiting from the wage hikes are women, addressing gender disparities in income.
3. SDG 8: Decent Work and Economic Growth
   • The focus on raising minimum wages and improving workers’ earnings supports the promotion of decent work and economic growth.
4. SDG 10: Reduced Inequalities
   • The article notes that Black and Hispanic workers disproportionately benefit from the wage increases, which relates to reducing inequalities.

2. Specific Targets Under Those SDGs Identified

1. SDG 1 – Target 1.2: By 2030, reduce at least by half the proportion of men, women and children living in poverty in all its dimensions according to national definitions.
   • Minimum wage hikes help increase income for low-wage workers, contributing to poverty reduction.
2. SDG 5 – Target 5.a: Undertake reforms to give women equal rights to economic resources, including access to ownership and control over land and other forms of property, financial services, inheritance and natural resources.
   • Higher wages for women support economic empowerment and equality.
3. SDG 8 – Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
   • Raising minimum wages aligns with promoting decent work and fair pay.
4. SDG 10 – Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
   • Wage increases benefiting minority groups help reduce income inequality.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator 1.2.1: Proportion of population living below the national poverty line.
   • Implied through the discussion of wage increases aimed at improving income levels.
2. Indicator 5.a.1: Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex.
   • While not directly mentioned, the article’s focus on women benefiting from wage hikes implies tracking economic empowerment by gender.
3. Indicator 8.5.1: Employment rate, by sex, age and disability status.
   • The article provides data on the percentage of workforce impacted by wage hikes, which can relate to employment and income metrics.
4. Indicator 10.2.1: Proportion of people living below 50% of median income, by age, sex and persons with disabilities.
   • The mention of Black and Hispanic workers disproportionately benefiting suggests monitoring income inequality among demographic groups.
5. Additional Implied Indicators:
   • Average annual wage increase per worker.
   • Percentage of workforce receiving wage increases.

4. Table of SDGs, Targets, and Indicators

Source: cbsnews.com