Gen Z Says $30 an Hour Still Isn’t Enough — These States Fall Short of Their Living Wage Expectations
Written by
Emily Fowler
Edited by
Zuri Anderson
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Gen Z has had enough of scraping by. According to a survey by John Stevenson, nearly half of Gen Z adults consider a livable wage in the U.S. to be at least $30 per hour, with 13% saying it really takes $40 per hour or more. And yet, not a single U.S. state guarantees wages anywhere near that figure.
Despite being the most connected generation yet, many Gen Zers are entering adulthood under crushing financial pressure. Student debt, housing costs and inflation are colliding with stagnant wages and a gig-driven economy. According to the survey, only 3% believe less than $15 an hour is enough to live on.
But reality paints a starkly different picture. The federal minimum wage remains frozen at $7.25, and many states still cling to that rate. Some offer even less on paper, though federal law overrides them in most cases. Meanwhile, Gen Z’s wage expectations are surging far ahead of what employers or states are offering.
States Falling the Furthest Behind
Alabama, South Carolina, Louisiana, Mississippi and Tennessee all lack a state minimum wage. Workers in these states are entirely dependent on the $7.25 federal floor, and, for Gen Z, that figure is unworkable. Georgia and Wyoming both set a minimum wage of $5.15, but because that’s lower than the federal rate, most employers must follow the Fair Labor Standards Act (FLSA) and pay the higher $7.25.
North Carolina, Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Dakota, Oklahoma, Pennsylvania, Texas, Utah and Wisconsin also stick to the federal minimum. That means roughly half the country still offers base pay less than a third of what many young adults believe is necessary to survive.
Who’s Doing Better?
A few states come closer to meeting expectations, but none are truly hitting the $30 target. California ($16.50), New York City and surrounding counties ($16.50), Washington ($16.66) and the District of Columbia ($17.50) top the charts. Yet even these high-wage areas fall short when adjusted for cost of living, especially in cities where housing eats up a disproportionate share of income.
Oregon, New Jersey and Connecticut are all above $15 per hour, but they still lag far behind the generational benchmark of $25 to $30 per hour.
The Growing Disconnect
Gen Z is rejecting the idea that working full-time should barely cover the basics, and even their views on what full-time work is are not necessarily the norm, with more than half thinking Americans should be able to live comfortable working less than 40 hours a week, per John Stevenson.
The labor force is evolving rapidly, and younger workers have high expectations. They want security, flexibility and enough income to plan for the future, not just pay for today.
More From GOBankingRates
