Living on $1.25 an Hour: The History Of Michigan’s Minimum Wage

Michigan, as well as 21 other states in the US, have increased their state's minimum wage. Only time will tell what kind of impact Michigan's 23-cent increase will have on the state's economic health.

Related: Nation's Highest Rent Hikes: 4 Michigan, Ohio, and Indiana Cities

After experiencing the shortage of workers following the 2020 Pandemic, business owners and consumers alike are starting to see staffing levels reach at or near pre-COVID standards.

The latest increase is the 5th of 12 annual increases to Michigan's minimum hourly wage, with the end goal of reaching $12.05 by 2030. Here's a look at the history of Michigan minimum wage, according to the Improved Workforce Opportunity Wage Act 337 of 2018:

• 1968 - 1971
  • $1.25
• 1972 - 1975
  • $1.60
• 1976 - 1978
  • $2.20
• 1979
  • $2.90
• 1980
  • $3.10
• 1981 - 1997
  • $3.35
• 1998 - 2006
  • $5.15
• 2007
  • $6.95
• 2008
  • $7.15
• 2009 - 2013
  • $7.40
• 2014 - 2015
  • $8.15
• 2016
  • $8.50
• 2017
  • $8.90
• 2018
  • $9.25
• 2019
  • $9.45
• 2020 - 2021
  • $9.65
• 2022
  • $9.87
• 2023
  • $10.10
• 2024
  • $10.33

Originally, the wage was set to increase annually, but unemployment issues caused by COVID-19 put unemployment above 8.5%, which resulted in that year's increase being delayed.

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This could mean that the eventual goal of $12.05 by 2030 could be delayed until 2031 or later if unemployment rates creep beyond the threshold again. Assuming that 2031 is now the goal, here's how the remainder of Michigan's increases will play out:

• 2025
  • $10.56
• 2026
  • $10.80
• 2027
  • $11.04
• 2028
  • $11.29
• 2029
  • $11.54
• 2030
  • $11.79
• 2031
  • $12.05

Those earning minimum wage may be happy to see the increase, but is it enough? According to MIT's Living Wage Calculator, $10.33 isn't enough to make it. To make what is considered a 'Living Wage' a Michigan resident needs to take home at least $16.27 an hour, leaving the state's new wage $5.94 AN HOUR short.

Related: The Income Needed to Afford Rent in Michigan and Every Other State

Are you living on or could you live on $10.33 an hour?