Tamitha Murphy knows she had a lot of company when she made minimum wage.

"I do know that a lot of people make minimum wage - and I was one of them not long ago," the clerk at Ady's Convenience and Car Wash in Post Falls said.

That's why Murphy is thankful for her $8-an-hour job.

"I'm more happy here, and I like my job," said Murphy, who formerly worked at a fast-food restaurant.

Idaho was No. 1 in the nation for the percentage of hourly workers - 7.7 percent - who made the state's minimum wage of $7.25 or less in 2012, according to a report released on Wednesday by the Idaho Department of Labor.

Three of every four jobs the Idaho economy created last year were in the service sector, where the minimum wage jobs are, according to the report.

The U.S. Bureau of Labor statistics estimated that 31,000 of Idaho's 404,000 hourly workers were paid the minimum wage last year. That was an increase of 12,000 from 2011 when 5 percent of the state's hourly workforce made the minimum wage or less. That ranked Idaho 30th in 2011, while Georgia was No. 1 at 9.6 percent.

Idaho's jump from 2011 to 2012 was easily the largest of any of the 16 states that posted increases. Nationally, 4.7 percent made minimum wage or less in 2012, down from 5.2 percent in 2011.

Idaho's increase was likely due to more part-time workers and teenagers entering the workforce and the need for secondary incomes, according to the report.

Steve Wilson, president and CEO of the Coeur d'Alene Chamber of Commerce, said the report underscores the need and importance of economic development efforts to recruit and support firms tied to sectors such as manufacturing and technology.

"Skilled jobs pay more," Wilson said. "Manufacturing and technology companies need and hire more skilled workers. To improve the overall economy, we need to grow (in those areas). We should start by listening to and working with those companies that are here now, nurturing their growth. We must take the necessary steps to assure for a skilled workforce."

Larry Kenck, of Post Falls and the new chairman of the Idaho Democratic Party, said the wage statistics show why his group plans to focus on efforts that create good-paying jobs.

"Not the type of jobs that it takes three to pay for the mortgage," he said.

Kenck said the wage situation has a ripple effect because when people don't have disposable income, businesses also feel the pinch.

He said state leaders should be held accountable for Idaho's "terrible" minimum wage statistic, which is felt most by the working class.

"Out here in our communities it isn't a statistic at all; it is real families of hard-working Idahoans who need fair wages and a fair shot at prosperity to give their children the bright futures they deserve," Kenck said.

Idaho's percentage of minimum wage earners in 2012 was its highest mark in the decade that the labor bureau has been releasing the estimates. The state's previous highest percentage was in 2010 at 7.6 percent, which ranked Idaho 16th.

The report does not have a breakdown on the statistics by county.

In addition to having the highest percentage of minimum wage earners, Idaho is among the states that offer the lowest minimum wage. Idaho is among 23 states where the minimum wage is the same as the federal level of $7.25.

While Murphy is only making 75 cents above Idaho's minimum wage of $7.25, she said she has felt the difference in her financial situation and, perhaps more importantly, her self-esteem.

"I wasn't as happy when I was making minimum wage," she said.