The minimum wage rises and is outpacing inflation

By Tara Kalwarski/Charts by David Foster

An 11% bump, effective July 24, brings the federal minimum wage up to $7.25 an hour. Adjusted for inflation, the new rate is at its highest level in more than two decades. In real terms, however, its still 25% less than in the late 1960s. But last year only 3% of workers age 16 and older were paid the minimum.