The cost of living in Guam has surged, but wages have barely budged. Prices, measured by the Consumer Price Index (CPI), rose 6.4% from the third quarter of 2023 to the third quarter of 2024, according to the latest figures from Guam’s Bureau of Statistics and Plans. What $100 could buy just a year ago now costs $106.40. For workers and retirees whose incomes stayed the same, this isn’t just a statistic—it’s a real loss of purchasing power, making it harder to afford food, rent, and everyday essentials.
Over the same period, the average hourly wage increased by just 1.7%—barely making a dent in rising costs. And what about the minimum wage? It hasn’t changed at all since it was raised to $9.25 per hour back in 2021, over three years ago. The last time Guam’s minimum wage actually had strong purchasing power was in 2015, when it reached $8.25 per hour. Since then, it has increased by just $1—but if it had kept up with inflation, it would be worth $12.10 today.
If a real increase in the minimum wage were proposed, organized business interests would start crying that they “can’t afford it.” But let’s be clear—that’s just not true.
While the minimum wage has risen by just 12.1% since 2015, the average private-sector wage has increased by 38.4% over the same period. That tells us one thing: wages have risen significantly, but low-wage workers aren’t seeing their fair share. This isn’t about whether businesses can afford to pay more—it’s about whether they have to. Apparently, if they don’t have to, they won’t.
Decades of research show that raising the minimum wage does not reduce employment. In fact, it reduces turnover, increases productivity, and boosts morale, making businesses more efficient in the long run. The idea that higher wages lead to layoffs is a scare tactic, not an economic reality.
Businesses worried about higher payroll costs need to remember one thing: workers are also customers. When people earn more, they spend more—and that money flows right back into local businesses. Higher wages don’t just lift up workers; they strengthen our economy.
We don’t have to guess what happens when the minimum wage is higher—we already know. After the 2015 wage increase, an independent study by Market Research & Development, Inc. found that a minimum wage equivalent to $12.10 today helped workers without hurting Guam’s economic performance. We’ve seen the results, and they were positive. The only question now is: why are our workers still waiting for a higher minimum wage?
Increasing the minimum wage isn’t comfortable for politicians. The moment a bill is introduced, organized business floods the conversation with scare tactics. And even some fair-weather allies will shrink back when a hysterical business owner begins to scream that they will lay off workers or that their employees would just waste the extra money on booze and cigarettes. I’m not even making that up! Both are from on-the-record testimony in front of the legislature.
Guam’s workers can’t afford to wait any longer. The cost of living keeps rising, and working families need higher wages to make ends meet. If politicians won’t act, then we must demand it. No excuses. No delays. It’s time to raise the minimum wage.
GuamMinimumWage.org 