New Ipsos Study Finds 8 in 10 Americans Think the Federal Minimum Wage is Too Low and Two-Thirds Support Increasing Minimum Wage to $15 Per Hour

Rhea-AI Summary

Ipsos' new study reveals that a significant majority of Americans, 80%, believe the federal minimum wage of $7.25 is too low and should be increased to at least $15 per hour. The poll, which surveyed over 6,000 individuals, found that two-thirds support a $15 minimum wage. Many respondents indicated that those earning less than $15 struggle to afford basic necessities. Amazon, having raised its starting wage to $15 in 2018, is highlighted as a leader among large employers advocating for wage increases to enhance employee well-being.

Positive

• Amazon's starting wage for U.S. employees is at least $15 an hour, positively impacting over half of its front-line workers.
• The Ipsos study underscores widespread public support (80%) for increasing the federal minimum wage to $15, indicating potential favorable public sentiment towards companies who adopt similar policies.

Negative

• None.

Today, global market research firm Ipsos released a new, comprehensive federal minimum wage study, which polled more than 6,000 Americans on their knowledge of and opinions on the current federal minimum wage of $7.25 an hour. The study confirmed that the vast majority of Americans agree that the federal minimum wage is too low and should be increased to at least $15 per hour. In addition, the study highlighted the difficulties for those earning less than $15 per hour to afford basic necessities, the significant impact increasing the federal minimum wage would have on American lives, and the role that large businesses should play in increasing the minimum wage.

Amazon - Ipsos $15 Minimum Wage Study Infographic (Graphic: Business Wire)

In 2018, Amazon raised its starting wage for all U.S. employees to at least $15 an hour, and today well over half of all Amazon front-line employees in the U.S. earn more than $15 an hour.

The findings in this study reveal a widely held view that the current amount of $7.25 an hour is too low.

• Eight in ten Americans (80%) say the federal minimum wage is too low. This consensus was seen across all genders, generations, education levels, races, income levels, and regions of the country.
• Among those surveyed who hold an opinion on the federal minimum wage, two-thirds support increasing it to $15 per hour. Even when including undecided respondents on the matter, more than half (56%) support a $15 per hour minimum wage.
• The majority of Americans also believe raising the minimum wage would have a positive impact on employees in general (70%), the country (55%), their community (54%), and the economy (54%).

“Virtually any policy discussion today devolves into partisan debates and experts talking past each other,” said Chris Jackson, Senior Vice President of Public Affairs at Ipsos. “Rarely, if ever, do the opinions or preferences of regular Americans enter into these debates, but our study clearly indicates that the American people want to see the federal minimum wage increased. This level of agreement is practically unheard of in contemporary America and reflects an overwhelming public consensus that elected officials should think twice before disputing.”

The Real Impact of a $15 Starting Wage

About two in five hourly, temporary, or seasonal employees say they make less than $15 an hour (37%). Those who make less than $15 an hour are significantly less likely to say they can afford basic human needs such as shopping for groceries, paying for prescription drugs, or a doctor’s visit. An unexpected event can financially derail them, and they are significantly less likely to be satisfied with all aspects of their life compared to those who earn $15 or more or are salaried employees.

• Increasing the federal minimum wage to $15 an hour would have a significant impact on those currently making less than that amount. About one in four people currently earning $15 an hour or more say that at some point in the past five years, they have earned less than $15 an hour (24%). When they compare what they could afford before their income increased versus now, this group is significantly more likely to say they can afford necessities, such as groceries (a 15% increase), going to the doctor (a 20% increase), and prescription drugs (a 19% increase).
• People making less than $15 are significantly more likely to say they are spending more than they make (26% compared to 17% of those making $15 or more, and 10% of salaried employees) and more likely to say they pay most of their household bills late (17% compared to 5% of those making $15 or more and 2% of salaried employees).
• Those making less than $15 an hour are twice as likely to say they are not confident they could come up with $500 if an unexpected need came up in the next month (30%) compared to those making $15 or more (16%).

The Role & Responsibility of Large Businesses in Increasing the Minimum Wage

When compared to politicians and policymakers (73%), advocacy groups (69%) and the media (51%), more Americans (80%) think large employers should play a role in raising the federal minimum wage.

Amazon’s 2018 decision to increase starting wages to at least $15 an hour—for all full-time, part-time, temporary, and seasonal employees—immediately drove a positive impact. The increase helped Amazon employees purchase cars, pay for home repairs and college tuition, and build their savings.

“Where I worked before Amazon, I made $11 an hour, it was very hard for me to save money to pay my bills,” said Kimberly Reece, an Amazon warehouse employee in Miami, Florida. “But now I'm able to pay all my bills on time and was able to move into a bigger house with my mom so I can help take care of her.”

Stories like Kimberly’s are why Amazon, as one of the nation’s largest employers, continues to encourage other large companies to raise their wages and to advocate for members of Congress to raise the minimum wage.

“We believe that $15 an hour is the minimum that anyone in the U.S. should earn for an hour of labor; that’s why we were among the first major employers to offer a $15 an hour starting wage and why we’ve been advocating for an increase to the federal minimum wage ever since,” said Jay Carney, Senior Vice President, Amazon Global Corporate Affairs. “We were thrilled when several other major companies—including Target, Best Buy, and Costco—also increased wages to at least $15 an hour for their employees. We are hopeful that more follow suit. That’s what U.S. workers deserve and, as this new study makes clear, what people across the country want.”

Amazon’s minimum wage comes on top of comprehensive benefits like healthcare, 401(k) company matching, and paid parental leave. In addition, Amazon employees can access a wide range of free training programs to learn new skills for in-demand jobs as part of Upskilling 2025–a $700 million commitment to help employees gain critical knowledge so they can move into higher-skilled, better-paying roles.

For more on the study, and to see the stories of people who have experienced the benefits of a $15 an hour starting wage, please visit aboutamazon.com/ipsos-study and Ipsos.com.

Methodology

This Amazon/Ipsos poll was conducted January 28 to February 8, 2021 by Ipsos using the probability-based KnowledgePanel. This poll is based on a nationally representative probability sample of 6,354 with a boost for hourly workers and state boosts in Florida, Minnesota, Washington, Arizona, Georgia. The survey was conducted in English and Spanish.

KnowledgePanel is the largest and most well-established online probability-based panel that is representative of the adult US population. Our recruitment process employs a scientifically developed addressed-based sampling methodology using the latest Delivery Sequence File of the USPS – a database with full coverage of all delivery points in the US. Households invited to join the panel are randomly selected from all available households in the U.S. Persons in the sampled households are invited to join and participate in the panel. Those selected who do not already have internet access are provided a tablet and internet connection at no cost to the panel member. Those who join the panel and who are selected to participate in a survey are sent a unique password-protected log-in used to complete surveys online. As a result of our recruitment and sampling methodologies, samples from KnowledgePanel cover all households regardless of their phone or internet status and findings can be reported with a margin of sampling error and projected to the general population.

The data were weighted to adjust for gender by age, race/ethnicity, education, Census region, metropolitan status, household income, and party identification. The demographic benchmarks came from 2019 American Community Survey (ACS) from the US Census Bureau.

– Gender (Male, Female) by Age (18–29, 30–44, 45–59, and 60+)
– Race/Ethnicity (White Non-Hispanic, Black Non-Hispanic, Other or 2+ Races Non-Hispanic, Hispanic)
– Education (High School graduate or less, Some College, Bachelor and beyond)
– Census Region (Northeast, Midwest, South, West)
– Metropolitan status (Metro, non-Metro)
– Household Income (Under $25,000, $25,000-$49,999, $50,000-$74,999, $75,000-$99,999, $100,000-$149,999, $150,000+)
– Party ID (Democrat, Republican, Independent, Something else)

About Amazon

Amazon (NASDAQ:AMZN) is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

About Ipsos

Ipsos is the world’s third largest Insights and Analytics company, present in 90 markets and employing more than 18,000 people. Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions. ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP www.ipsos.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210316005362/en/

FAQ

What did the Ipsos study reveal about the federal minimum wage?

The Ipsos study found that 80% of Americans believe the federal minimum wage of $7.25 is too low and should be increased to at least $15 per hour.

What percentage of Americans support a $15 per hour minimum wage according to the Ipsos study?

According to the Ipsos study, two-thirds of respondents support increasing the minimum wage to $15 per hour.

How has Amazon responded to minimum wage concerns?

Amazon raised its starting wage to at least $15 an hour in 2018 and encourages other large companies to follow suit in raising wages.

What impact does earning less than $15 an hour have on individuals?

Those earning less than $15 an hour are less likely to afford basic necessities and face financial instability compared to those earning more.