Benzinga Reports: Almost a third of states with lower than average projected family income have a higher than average unemployment rate, data study find

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Jun 21, 2021, 13:01 ET

DETROIT, June 21, 2021 /PRNewswire/ -- Benzinga, a fintech media company providing actionable news and data insights to retail traders, publishes its latest data survey "Comparing Unemployment Rates and Minimum Wage During the COVID-19 Pandemic, State-by-State."

As lockdown restrictions are lifting nationwide, some industries are having trouble filling gaps in their workforce, with many arguing that raising the federal minimum wage from $7.25 to a $15.00 per hour would incentivize people to take traditionally lower-paying jobs.

While only the District of Columbia has adopted a $15.00 minimum wage, many states (about half) have upped their minimum wage beyond the federally mandated minimum of $7.25. The average minimum wage nationwide is currently $9.48 per hour, with the lowest being $5.15 (Georgia) and the highest after the District of Columbia being California at $14.00 per hour.

Using data from several government databases tracking pandemic unemployment and minimum wage trends, Benzinga found unemployment rates dropped roughly 8% on average nationwide year-over-year from 2020 to 2021, while minimum wage rose 3.41% in that same period nationwide. Further, almost a third of states with a lower than average projected family income have a higher than average unemployment rate at the time of publication.

Over half of states currently have a minimum wage above the national average with close to a quarter of these states reporting a higher than average year-over-year drop in unemployment rates from 2020 to 2021.

To view the raw data as well as more key takeaways and detailed findings, read the full report here.

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SOURCE Benzinga