The Floor

Real federal minimum wage

Currently elevated — historically leads Motor Vehicle Insurance CPI by 3 quarters. Motor Vehicle Insurance CPI · View projections

What is the current Floor?

REAL FEDERAL MINIMUM WAGE
$2.2 ↓ Worsening
per hour in constant 1982-84 dollars is what the federal minimum wage is now worth

Real Federal Minimum Wage: $2.2 as of 2026-05, and worsening. Source: Computed (U.S. Department of Labor FEDMINNFRWG / CPI data retrieved via FRED).

The Floor falling to $2

Tracking worsening relative to recent baseline.

Source: Computed (U.S. Department of Labor FEDMINNFRWG / CPI data retrieved via FRED) · Source data ↗

How has The Floor changed over time?

CSV Chart
Inflation keeps shrinking what the federal minimum wage buys
Federal minimum wage in constant 1982-84 dollars, CPI-adjusted
The Floor
Historical data
Monthly · Computed (U.S. Department of Labor FEDMINNFRWG / CPI data retrieved via FRED)
Period Value YoY Change
May 2026 $2.1708 -$0.0904
Apr 2026 $2.1811 -$0.0824
Mar 2026 $2.195 -$0.0721
Feb 2026 $2.214 -$0.0539
Jan 2026 $2.2199 -$0.0531
Dec 2025 $2.2237 -$0.059
Nov 2025 $2.2303 -$0.0602
Sep 2025 $2.236 -$0.0675
Aug 2025 $2.2426 -$0.0659
Jul 2025 $2.2504 -$0.0617
Jun 2025 $2.2555 -$0.0605
May 2025 $2.2612 -$0.0538

Frequently Asked Questions

What is Real Federal Minimum Wage?

Real federal minimum wage

Why does Real Federal Minimum Wage matter for financial distress?

Real Federal Minimum Wage is one of the indicators tracked by the American Distress Index (ADI), which measures five dimensions of U.S. household financial distress: Delinquency, Default & Legal, Debt Burden, Labor, and Safety Net & Buffer. Changes in this indicator contribute to the overall distress picture.

Where does the Real Federal Minimum Wage data come from?

This data comes from Computed (U.S. Department of Labor FEDMINNFRWG / CPI data retrieved via FRED). More information: https://fred.stlouisfed.org/series/FEDMINNFRWG. The American Distress Index updates this indicator monthly.

Ross Kilburn
Written by

Ross Kilburn, Founder

American Default Research · Seattle, Washington

Two decades working directly with financially distressed American households — from property preservation in 2003, to negotiating over 1,000 short sales during the Great Recession, to foreclosure defense marketing today. Author, The Ark Law Group Complete Guide to Short Sales (Auroch Press, 2013). Twice named to Puget Sound Business Journal Fast 50 for Ark Law Group. B.A., University of California, Berkeley, 1992. Founded American Default Research in 2026 to fill a gap in public data that had been empty since 2013.

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Why does The Floor matter?

The Floor is one of 98 live indicators tracked by American Default Research. The methodology page explains sources, update cadence, and how the index uses its published inputs.
View methodology →
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