California plans to raise the state minimum wage to $15 an hour by 2023. A study by Employment Policies Institute shows California will lose 400,00 jobs. Even worse, low-paid workers will suffer the most.
According to Fox News, an analysis in trends by EPI from 1990 to 2017 helped to project how a $15 state minimum wage will impact the workforce. According to the study, each 10% increase in minimum wage resulted in a 2% decline in employment. Per Fox: “The impact was larger, 5%, for lower-paid workers. By those estimates, the EPI projects that the pending $15 minimum wage hike would cost California 400,000 private sector jobs, with heavy losses in both the foodservice and retail sectors.”
While the left tries to push the image of compassion they are actually making things even tougher for low-paid workers.
EPI said, “rising minimum wage has depressed employment opportunities in the most heavily-impacted industries.”
Effective January 1 all businesses with 26 or more employees will have to pay $11 minimum wage, up from $10.50. Every year the minimum wage will go up $1 per hour until 2022 when it reaches $15. What about businesses with less than 26 employees? They will reach $15 an hour minimum wage for their employees by 2023.
Forced minimum wage hikes have proven to be unsuccessful. The $13 minimum wage in Seattle led to a drop of income for low-wage workers. This was because the higher wage forced business owners to cut back hours.
Per Daily Wire:
In other words, the push to implement mandatory increases in minimum wage is not a win for the working man. And automation and new technology will likely compound such problems.
A new report from McKinseyGlobal Institute estimated a loss of some 73 million jobs in the U.S. by 2030, though researchers said economic growth via “rising productivity and other forces could more than offset the losses.”
“In the U.S., 39 million to 73 million jobs could be destroyed, but about 20 million of those displaced workers can be shifted fairly easily into similar occupations, though they may take on slightly different tasks, the report says. That means 16 million to 54 million workers — or as much as a third of the U.S. workforce — will need to be retrained for entirely new occupations,” noted USA TODAY.
— FOX Business (@FoxBusiness) December 15, 2017
When will the left realize that forcing an increase in minimum wage is not a winning proposition? Business owners will find other ways to save the money they are being forced to pay to employees.