218,000 jobs could be lost by 2021
How Dangerous Would a $15 Minimum Wage Be For Indiana?
How dangerous will a minimum wage hike be for Indiana?
Small businesses would struggle with a $15 minimum wage
hike, according to a new report.
By 2021, the state could see a net loss of 218,000
jobs, according to a
report by Heritage Foundation.
And that’s just for starters.
“Starting wages of $15.00 per hour mean full-time
employees must create at least $38,700 a year in value for their employers
(including wages, employer payroll taxes, and Obamacare-mandate penalties),”
writes James Sherk, a Research Fellow at Heritage Foundation. “Such a high
hurdle would make it much harder for less-experienced and less-skilled workers
to find full-time jobs. Many of these workers are not yet productive enough to
create that much value for their employers and businesses will not hire them at
a loss.”
According to the report, “many businesses might respond to
a $15 mandate by eliminating positions, cutting hours, and looking for new ways
to implement labor-saving technology. Some companies might have to face
shutting down or leaving America entirely to cope with the additional expenses.”
A possible increase in Indiana’s $7.25 minimum wage died
earlier this year.
A bill that would have increased the state minimum wage
from $7.25 an hour to $11.25 an hour was not heard in committee. In a victory
for NFIB/Indiana members, SB 211 was assigned to the Committee on Pensions
& Labor on January 6, and has since languished there.
Lawmakers could revive the issue next session.