There is a perfect example of why job losses from minimum wage hikes are being underestimated in a big way. Over the past several months, people have highlighted a number of economic studies that analyze the potential negative impact, in terms of job losses, that may be expected as a result of the minimum wage hike that are happening across the country.
- 2.6 million jobs will be lost around the country over the next several years as states phase-in minimum wage hikes that have already been passed.
- A 10 percent increase in the real minimum wage is associated with a 0.3 to 0.5 percentage-point decline in the net job growth rate.
- Minimum wage hikes trigger pay increases across the pay scale, not just for the employees earning minimum wage.
“Over the past several months, we’ve highlighted a number of economic studies analyzing the potential negative impact, in terms of job losses, that may be expected to result from the state-mandated minimum wage hikes that are currently being implemented around the country.”