Minimum wage effect? – IOTW Report

Minimum wage effect?

AEI-

January to June job losses for Seattle area restaurants (-1,300) largest since Great Recession.

In June of last year, the Seattle city council passed a $15 minimum wage law to be phased in over time, with the first increase to $11 an hour starting on April 1, 2015. What effect will the eventual 58% increase in labor costs have on small businesses, including area restaurants? It’s too soon to tell for sure, but there is already some evidence that the recent minimum wage hike to $11 an hour, along with the pending increase of an additional $4 an hour by 2017 for some businesses, has started having a negative effect on restaurant jobs in the Seattle area.

 

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8 Comments on Minimum wage effect?

  1. I should hire 1-2 people for my little tiny business, but I’m not going to in this environment. I’ll purposely restrict my growth to avoid the burden of employees. Minimum wage, health care, family leave, 401K, company car, blah, blah, blah, it is not worth it.

  2. The ones that really get hurt are the small restaurants. In absolute terms they just don’t have the cash cushion of bigger ones. Their only option is to pass on the extra cost and thus make themselves less competitive. Progressive policies always lead to more consolidation and money for the connected. But they’ll tell you they represent the little guy. They are lying sacks of shit.

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