Over the past decade, minimum wage throughout the United States and the state of Idaho have experienced fluctuation depending on the changes in the economy and general inflationary trends. As of 2021, the federal minimum wage sits at $7.25 and Idaho minimum wage has been locked in at $7.25 for the past ten years. Looking forward though, what can we expect from minimum wage in the US and Idaho in 2023?
In 2023, the national minimum wage increase is expected to be the first increase in a decade. Currently, the House of Representatives and the Senate are debating the possibilities presented by the Raise the Wage Act of 2021. The act would increase the federal minimum wage to $15 an hour, but it is likely this change won’t take effect until 2024. This means that there will likely not be an immediate, drastic change to the minimum wage in 2023, but this doesn’t necessarily mean it will stay at $7.25. The federal government may opt to raise the rate to, say, $8.50 an hour in 2023, while debating the complexities of the proposed $15 an hour law.
In Idaho, depending on the outcome of the national debate, we can expect the minimum wage to either stay steady or, if the rate is raised federally, it will also increase to the same rate in Idaho. This scenario is most likely to play out, as Idaho has kept their rate in line with the national rate since 2009. However, it is possible the state could take an independent approach and increase the rate of their own volition. This could be precipitated if the federal, national rate is increased, but not to the level Idaho legislators deem adequate.
Furthermore, as certain municipalities within the state have independently increased the minimum wage previously, it is possible this act may be repeated in 2023. This could be in response to continuing unequal wages between urban and rural areas across the state. A rise in cost of living or a significant change in job availability in certain regions is enough to spur localized legislation for a higher minimum wage.
Ultimately, the minimum wage in the US and Idaho in 2023 is up for debate. While the prospects of the current proposed Raise the Wage Act of 2021 look promising, it could still be changed or delayed before it is enacted in 2024. In Idaho, it is likely the minimum wage will increase in accordance with any federal change, but localized wage increases are also a distinct possibility depending on the changing economic landscape in the state as well.
