New Research Estimates 1.8 Million Jobs Erased by $12 Federal Minimum Wage

Date: October 18, 2016

Related Content: News State California Minimum Wage

National Federation of Independent Business/California
Contact: Shawn Lewis (916) 342-9315;[email protected]
Follow: @NFIB_CA and on Facebook

New Research Estimates 1.8 Million Jobs Erased by $12 Federal Minimum Wage
Economic output would shrink by $2 trillion according to NFIB study

SACRAMENTO, Calif., October 18, 2016 –
Raising the federal minimum wage to $12 per hour could reduce private sector employment by 1.8 million jobs over 10 years and cut economic output by $2 trillion, according to a new report released today by the National Federation of Independent Business (NFIB).

“Both candidates for president have expressed support for raising the minimum wage, and it’s important for voters to understand the consequences,” said NFIB/CA State Executive Director Tom Scott. “Raising the minimum wage to $12, without any connection to the economy or business conditions, has the potential to devastate small businesses and wipe out nearly two million jobs.”

Scott pointed out that neither Donald Trump nor Secretary Clinton has been asked about raising the minimum wage in any of the presidential debates so far. The candidates will meet tomorrow night for their final nationally televised exchange before the election on November 8th.

“This is a very important issue that deserves more serious discussion from all candidates running for federal office this year,” Scott added.

“It is also important to point out that this NFIB report assumes an increase in the federal minimum wage to $12 per hour phased in by 2019, and then increased every year thereafter based on inflation. However, California is already on track in statute to reach $12 per hour by 2019, and eventually $15 per hour by 2022. Therefore, here in California, the devastating economic impacts are not theoretical, but rather certain for our already struggling small businesses,” Scott continued.

Small businesses would be affected disproportionately. According to the NFIB research, 57 percent of the jobs that would disappear would come from small businesses.

Raising the minimum wage to $12 per hour would also limit economic output, according to the research. Fewer jobs mean fewer workers producing goods and services. Economic output would be lowered by trillions of dollars as a result of a $12 federal minimum wage, the study predicts.

“Economic growth has been dismally low for years,” said Scott. “A 65-percent federal increase in labor costs for small employers could push the economy over the edge. This is a very big issue, and it deserves a much brighter spotlight before voters go to the polls next month.”

Click here to view the entire report.


For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB has 350,000 dues-paying members nationally, with over 22,000 in California. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. To learn more visit

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