START A PETITION 25,136,189 members: the world's largest community for good
START A PETITION
x
1,313,753 people care about Politics

Ask This State Whether a Higher Minimum Wage Kills Jobs

Ask This State Whether a Higher Minimum Wage Kills Jobs

Written by Bryce Covert

There’s more real life evidence that a higher minimum wage may not be harmful for job creation.

In their new analysis of small businesses and job growth, Paychex and IHS report that Washington, the state with the highest minimum wage,†topped the list for the biggest increase in small business employment, with jobs growing by 2.22 percent over the last year. The state’s minimum wage is currently $9.32, the highest in current law, although†a handful of others have passed increases that will bring theirs higher.

Credit: Paychex/IHS

When it comes to cities, the story is the same. San Francisco, which has the highest big city minimum wage at $10.74, was the city with the greatest growth in small business employment. Seattle, which currently follows Washington’s minimum wage, came in a close second.

Credit: Paychex/IHS

Both Washington and Seattle are pushing for even higher minimum wages. Washington Gov. Jay Inslee (D) has proposed raising the wage to†somewhere between $10.82 and $11.82. Seattle, meanwhile, appears to have a legislative agreement to†raise its minimum wage to $15, which would be the highest in the country. San Francisco’s mayor also†supports a higher wage for the city and offered some tepid support for the $15 level.

That city in particular has†offered other real world evidence that a higher wage doesn’t necessarily bring economic area to an area. In the seven years after San Francisco increased its minimum wage in 2004, employment in the city grew by more than 5 percent while it fell in other Bay Area counties. Restaurant job growth was particularly strong, despite the strong opposition of large restaurant lobbying groups, increasing by 17.7 percent, faster than any other neighboring area. Washington has also seen positive trends in the 15 years after it increased its wage to a national high. Job growth has stayed steady at a 0.8 percent annual rate, higher than the national one, and employment at restaurants and bars grew by 21 percent.

And while the National Federation of Independent Business, which represents small businesses, vocally opposes increasing the minimum wage, its members†actually ranked minimum wage issues at number 52 out of 75 total, while nearly 30 percent said it wasn’t even a problem.

There have been some studies that found a higher minimum wage will hurt job growth, such as a Congressional Budget Office report that estimated a $10.10 wage would†reduce jobs by about 0.3 percent. But a different analysis of minimum wage increases at the state level over two decades†didn’t find any clear evidence that they affected job creation, even when unemployment was high.

This post originally appeared on ThinkProgress

Read more: , , , , ,

Photo credit: Thinkstock

have you shared this story yet?

some of the best people we know are doing it

122 comments

+ add your own
12:45PM PDT on Sep 11, 2014

Cost of living is higher in big cities too.

9:23PM PDT on Jun 4, 2014

Interesting differences between the cities. Thanks for the information.

2:11PM PDT on May 25, 2014

One more thing to know about restaurant jobs in Washington -- it's a State where all tipped employees have to be paid the full minimum wage, instead of half or less as Federal law requires. So if you wait tables in WA, you get the full State minimum wage of $9+ an hour, plus all the tips you receive. It's a pretty good job here, and restaurants seem to prosper despite their employees making a living wage.

11:39PM PDT on May 21, 2014

Thanks for the article...Agree with Ben...Australia's minimum wage is just over $16 ph

12:48PM PDT on May 21, 2014

ENOUGH TALK, AND PUT THE WAGES UP. Theresa Robinson.

5:34AM PDT on May 21, 2014

Minimum wage...anything less than $15 an hour is a bloody joke!

5:12AM PDT on May 21, 2014

noted

12:16AM PDT on May 21, 2014

I laugh at the criticism about a higher standard of living. How do you think the standard of living got higher in the first place? Because people were making higher wages and could afford more and could spend more? Rep/Cons what you call logic is what I call fallacy.

12:12AM PDT on May 21, 2014

WalMart is being criticized for low wages that make it so that their employees are encouraged by WalMart to go on welfare to make up the difference. Keeping wages low is HELPING the economy exactly how? Getting people off welfare by paying them a living wage is HURTING the economy how?

9:58PM PDT on May 20, 2014

The most effective and least problematic minimum wage is a national one, but a higher state one is better than no national increase and a higher local one is better than no state increase.

add your comment



Disclaimer: The views expressed above are solely those of the author and may not reflect those of
Care2, Inc., its employees or advertisers.

Care2 - Be Extraordinary - Start a Care2 Petition
ads keep care2 free
CONTACT THE EDITORS

Recent Comments from Causes

"America has a hunger problem. That’s a fact that often goes unnoticed, but at least one in seven…

That PROVES what a dog can do for us, another prove are the guide dogs that help the blind people

ads keep care2 free



Select names from your address book   |   Help
   

We hate spam. We do not sell or share the email addresses you provide.