Thanks to inflation and a historical performance by America’s labor market, “low income” carries new meaning in America. According to new Oxfam data, only 13% of US workers now earn less than $15 hourly, down from 31.9% two years ago. Even accounting for inflation, paychecks are growing faster than prices — a meaningful change for Americans who rely on every dollar.

• Strong demand for retail and restaurant workers pushed wages higher, along with successful minimum wage increase campaigns in various states.
• Among all workers, wages have grown 23% since 2020, edging the Consumer Price Index’s 20% — showing improved real purchasing power.

All that glitters isn’t gold: Despite the good news, Oxfam “hardly sees these numbers as acceptable.” The poverty-focused non-government organization raised its low-wage definition to those earning less than $17 per hour — encompassing ~25% of US workers. Furthermore, the numbers are skewed across ethnic groups and geographies. Hispanic and Black workers account for 65% of low-wage earners, a disproportionate share. Even the $7.25 minimum wage in states like Mississippi, Oklahoma, and Texas contrasts with the $16.28 mandated by Washington. While there’s been notable progress, more work is needed to address wage inequality.