25 states increase minimum wage; North Dakota does not

BISMARCK, N.D. (KFYR) - As we ring in the new year, many states around the country have raised their minimum wage for 2023. North Dakota was not one of them.

With exactly half of all 50 states in America raising their minimum wage, it has raised questions about why North Dakota did not.

“The federal minimum wage at $7.25 is much, much lower than most jobs are commanding right now because of the lack of labor,” said David Wald, president of Securian Financial Advisors of North Dakota.

While this seems like a worryingly low number, most entry-level jobs in North Dakota will start employees at $12-$14 an hour. Minimum wages come from The Federal Fair Labor Standards Act, which was implemented in 1938 to protect workers from extreme poverty.

“Depending on how far the value of the dollar goes, it’s hard to say if that $7.25 is still combating extreme poverty or not,” said Nathan Svihovec, North Dakota labor commissioner.

There are more jobs available than there are workers in North Dakota, made obvious by the number of hiring signs across the state.

“Really, I think the law is antiquated, and it doesn’t really do anything for the worker,” said Wald.

According to financial advisors, if there are more jobs than workers, the pay is higher; if there are more workers than jobs, the pay would go lower.

Job Service North Dakota offers programs to help workers build training and skills to make their resumes more appealing for a higher-wage job.

Copyright 2023 KFYR. All rights reserved.