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Did minimum wage in california go up. The cbo estimated a boost for 5 million workers and a loss of 300000 jobs. The idea that the federal minimum wage should be raised to 15 has now become so mainstream that most democratic candidates for president have endorsed it. But as the movement gains steam so does.
The movement which began in new york city in 2012 when fast food workers walked out of their jobs to demand 15 and a union has spread from coast to coast shaping the national conversation around wages and inequality and helping push through dozens of state and local minimum wage policies. Yet a new study from the national employment law project nelp finds no correlation between minimum wage increases and employment levels. The proposition that raising minimum wages will increase unemployment especially among lower skilled workers and young people is one of the most widely held beliefs among economists guided by the basic theory of supply and demand.
The states have discovered job loss store closures and reduced hours of work for low wage workers according to forbes. New york city experienced its worst decline in restaurant jobs since 911 after a 15 minimum wage there was enacted. The city saw its sharpest fall in restaurant employment in nearly 20 years.
Statistics may show job losses but fail to consider the loss of potential jobs. When amazon pulled out of new york the loss of 25000 future jobs made headlines. After hiking their minimum wages the states of new york and massachusetts have found that far from being a net positive the wage hikes have resulted in job loss and economic chaos.
For example if the average growth between 2015 and 2017 continued. The job losses below the minimum were balanced by job gains up to 5 above the new minimum including a sharp bunching of jobs paying at the new minimum such bunching has been common in past. Statistics from new york state re enforce the negative impact that the minimum wage has had on the city of new york.
Its 40 increase in the minimum wage was phased in over a two year period but substantial job losses are already evident. An increase to 10 an hour would give a raise to 15.
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