Tags: Minimum Wage | minimum wage | increase | cost | jobs

State Minimum Wage Increases Cost 1.8 Million Jobs So Far

State Minimum Wage Increases Cost 1.8 Million Jobs So Far

 A supporter of Oakland's minimum wage increase holds a sign during a celebration rally outside of city hall on February 27, 2015 in Oakland, California. Minimum wage workers gathered to celebrate a $3 increase in the city's minimum wage to $12.25 an hour passed in November with 81 percent voting in favor of the wage increase. The new wage goes into effect on March 2 (Justin Sullivan/Getty Images)

By    |   Sunday, 05 February 2017 08:53 AM

State minimum wage increases phasing in around the country will result in 1.8 million job losses with "minimal" increases in workers' salaries, a report from the American Action Forum reports. 

According to the center-right group, 22 states and the District of Columbia will implement minimum wage increases this year – but it'll come at a cost of 383,000 job losses.

"The full minimum wage increases over the next several years will cost 1.8 million jobs," policy analysts Ben Gitis and Curtis Arndt contend. "When combined with recent previous minimum wage increases in some of the same states, the total loss comes out to 2.6 million jobs."

"In the end, the additional earnings transferred from the job losers to the job keepers are minimal," and under minimum wage increases, "for each job loss, total wage earnings only rise by $6,900," the report states.

The proposals to raise the minimum wage are "well-intended," the authors write.

However, they argue, "it is important to consider the negative labor market consequences."

Employers usually pay for wage increases by cutting their workforce, raising the price on products, slowing down their hiring, or replacing more productive workers with low-skilled workers, according to the report.

"Unfortunately, it is the lowest-wage, least-skilled workers who pay the largest prices for these consequences," the Forum report contends.

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State minimum wage increases phasing in around the country will result in 1.8 million job losses with minimal increases in workers' salaries, a report from the American Action Forum reports.
minimum wage, increase, cost, jobs
217
2017-53-05
Sunday, 05 February 2017 08:53 AM
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