California will raise its minimum wage to $15.50 per hour for all workers on Jan. 1, 2023, Gov. Gavin Newsom (D) announced Thursday.
Why it matters: Inflation skyrocketed to a 40-year high this past year, leading to soaring prices and hurting low-income Americans in particular.
Details: California law requires a minimum wage increase to $15.50 when inflation exceeds 7%, which the state Department of Finance projects will happen by the end of the year, AP reports. It was announced Thursday as part of Newsom’s inflation relief package.
- “The COVID-19 pandemic has resulted in persistent supply chain disruptions and labor market frictions have driven inflation to its highest rate in 40 years,” according to a release from Newsom’s office. “These conditions have further been exacerbated by Russia’s war in Ukraine.”
- “For years, the state minimum wage has increased steadily while inflation numbers remained modest,” the release noted.
- “The wage increase will benefit millions of California households that are struggling to keep pace with the highest rate of inflation in decades.”
The big picture: A key measure of consumer prices surged ahead in April, diminishing hopes that inflation will fade in the near future, Axios’ Neil Irwin reports.
- President Biden said this week that addressing inflation is his “top domestic priority” ahead of midterm elections.
Source:axios.com