18 U.S. states to increase minimum wages from 2018

WASHINGTON, Jan. 4 (Xinhua) -- About 18 states in the United States will increase minimum wage from the beginning of 2018, which will benefit over 4.5 million workers across the country, according to a report released by the Washington-based think tank Economic Policy Institute.

The institute estimated that the minimum wage increases will provide over 5 billion U.S. dollars in additional wages to 4.5 million worders.

According to the institute, there are 21 states and Washington D.C. that have changed their minimum wage law since January 2014. About 27 states and Washington D.C. increased their effective minimum wage since January 2014.

Currently, the federal minimum wage is 7.25 U.S. dollars which was set in 2009. Of the total 50 states in U.S., 29 states and Washington D.C. have a minimum wage higher than the federal minimum wage.

To date, there are still 7 states that have no minimum wage law or a minimum wage below the federal standard.

Wage growth in U.S. has been soft in recent years despite the tightening labor market. The rises in minimum wage could give a boost the the overall wage growth.

According to the Federal Reserve's latest survey on economic conditions, most districts surveyed reported employers were having difficulties in finding qualified workers across various skill levels.

However, the survey showed that wage growth was modest or moderate in most districts. Wage increases were most notable for professional, technical, and production positions that remain difficult to fill.

Along with the modest wage growth, inflation in U.S. also remained soft. Most Fed officials expected that inflation would gradually move up to the central bank's 2 percent target in a couple of years. Enditem