In Arizona, a livable wage varies significantly depending on household size and composition. For a single adult with no children, a livable wage is approximately $23.40 per hour. This figure increases for households supporting children or with multiple working adults.
A living wage is defined as the hourly rate an individual must earn to cover their basic expenses and maintain a modest, yet adequate, standard of living. This includes costs for housing, food, transportation, healthcare, and other necessities, without relying on public assistance or accumulating debt.
Key Wage Figures for Arizona
To illustrate the differences, here are the detailed hourly wage figures for various household types in Arizona, encompassing living wage, poverty wage, and the state's minimum wage:
| Household Type | Living Wage (Hourly) | Poverty Wage (Hourly) | Minimum Wage (Hourly) |
|---|---|---|---|
| 1 Adult, 0 Children | $23.40 | $7.24 | $14.35 |
| 2 Adults (Both Working), 2 Children | $27.72 | $7.50 | $14.35 |
Let's break down what each of these wage types represents:
Living Wage
The living wage is the income level required for an individual or family to afford basic necessities. As shown in the table, it accounts for the actual costs of living in Arizona:
- For a single adult, it is $23.40 per hour.
- For a household with two working adults and two children, the combined living wage per hour for each working adult is $27.72. This reflects the increased financial demands of supporting a family.
Poverty Wage
The poverty wage represents the hourly income required to meet the federal poverty threshold. Earning only the poverty wage means an individual or family would likely struggle to cover even the most basic expenses, often relying on significant public assistance.
- For a single adult, this is $7.24 per hour.
- For a family with two working adults and two children, it is $7.50 per hour per adult.
Minimum Wage
The minimum wage is the lowest hourly wage an employer can legally pay their employees. In Arizona, the current minimum wage is $14.35 per hour for all employees, regardless of household composition. This figure is significantly lower than the living wage for all scenarios, highlighting a substantial gap between the legal minimum and what is considered a self-sufficient income in the state.
Understanding the Discrepancy
The stark difference between the minimum wage and the calculated living wage for various household types in Arizona indicates that many individuals and families may find it challenging to cover their essential costs of living solely on minimum wage earnings. This gap often necessitates multiple jobs, public assistance, or significant financial strain for those earning at or near the minimum wage. Understanding these figures is crucial for evaluating economic well-being and affordability across the state.
