Tags: Minimum Wage | california | minimum wage | lost | jobs

Study: Calif. Minimum Wage Increase Would Cost 400K Jobs

Study: Calif. Minimum Wage Increase Would Cost 400K Jobs
Union workers and minimum wage activists gather for a Labor Day rally in downtown Los Angeles on Monday, Sept. 4, 2017. (AP)

By    |   Friday, 15 December 2017 11:16 AM

A study revealed that California's plan to raise its minimum wage to $15 an hour by 2023 would result in a loss of 400,000 private sector jobs, according to a Fox Business report. 

The Economic Policy Institute study looked at employment trends from 1990 through 2017, and found that each 10-percent increase in California resulted in a 2-percent decline in jobs for minimum-wage employees, with lower-paid workers losing jobs at a 5 percent rate.

The institute predicted the 400,000-job loss would include large losses in food service and retail, according to Fox Business.

The report said "rising minimum wage has depressed employment opportunities in the most heavily-impacted industries," according to Fox Business.

California's minimum wage will increase to $11 per hour on Jan. 1, 2018 for employees with 26 or more employees, with a $1-dollar increase each year until 2023. Businesses with fewer than 25 employees will reach the $15 per year wage in 2023, according to a government document.

Conservative lobbying groups are preparing to prevent an increase to the minimum wage in case the Senate flips to Democrat control in 2018, according to The Intercept. 

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A study revealed that California's plan to raise its minimum wage to $15 an hour by 2023 would result in a loss of 400,000 private sector jobs, according to a Fox Business report.
california, minimum wage, lost, jobs
187
2017-16-15
Friday, 15 December 2017 11:16 AM
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