The government plays a key role in setting the minimum wage, an essential mechanism to protect workers with low incomes. In 2025, more than 800,000 employees in the United States will see an increase in their minimum wage starting July 1.
This measure has been achieved thanks to decisions made by different state and municipal governments. In fact, starting this very month, no fewer than 15 states and cities are implementing new amounts. These are the ones that will benefit nearly one million American workers.
The government raises the minimum wage in several states
Among the most notable states and cities is Alaska, which is raising its minimum wage from $11.91 to $13/hr. In the case of Oregon, it is increasing from $14.70 to $15.05/hr, with differences between urban and rural areas. Meanwhile, Washington DC is increasing its minimum wage from $17.50 to $17.95/hr.
In addition, 12 cities in California, Illinois, and Maryland will also raise their minimum wages. In California, for example, San Francisco and Berkeley will reach $19.18/hr. In Chicago, meanwhile, the minimum wage will rise to $16.60/hr.
Although the federal minimum wage in the United States ($7.25/hr) hasn't changed since 2009, local governments—state and municipal—have approved automatic increases indexed to inflation or through legislation.
Impact of this measure on the government and the economy
For the government and the economy, these adjustments have clear benefits. For example, they mean an improvement in purchasing power for a vulnerable sector, as well as a reduction in inequality by strengthening the lowest incomes. In addition, they encourage local consumption, since by earning more, workers spend more in their communities.
According to the Economic Policy Institute, workers in Alaska, Oregon, and Washington DC will see an average annual gain of between $400 and $900 per person. This represents a significant step forward for those living on minimum wages.
State and municipal governments have taken important steps to raise the minimum wage starting in July 2025. This decision is a clear example of the essential role that local authorities play in improving the economic situation of workers. With more than 800,000 beneficiaries, the measure reflects an effective public policy to reduce the economic gap and strengthen the social fabric.