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nce January 1 of this year, 13 states have raised their minimum wage.
However, these states also have something else in common: Since January 1, their have suffered a loss in job growth.
While most of these states’ minimum wage raises were automatic adjustments for inflation mandated previously, four state legislatures – Connecticut, New Jersey, New York and Rhode Island – specifically voted for increases to take place this year.
American Action Forum policy Analyst Ben Gitis explained the clear repercussions of raising minimum wages:
“While many assume that it would come out of profits of large companies, in reality it only affects restaurants and retail businesses that have narrow profit margins.”
“They have no choice but to either reduce their current employment levels or put off plans to expand and make new hires. As a result, the cost of the minimum wage comes out of the pockets of unemployed workers who are denied an opportunity to work.”
nce January 1 of this year, 13 states have raised their minimum wage.
However, these states also have something else in common: Since January 1, their have suffered a loss in job growth.
While most of these states’ minimum wage raises were automatic adjustments for inflation mandated previously, four state legislatures – Connecticut, New Jersey, New York and Rhode Island – specifically voted for increases to take place this year.
American Action Forum policy Analyst Ben Gitis explained the clear repercussions of raising minimum wages:
“While many assume that it would come out of profits of large companies, in reality it only affects restaurants and retail businesses that have narrow profit margins.”
“They have no choice but to either reduce their current employment levels or put off plans to expand and make new hires. As a result, the cost of the minimum wage comes out of the pockets of unemployed workers who are denied an opportunity to work.”
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