281,000 jobs could be lost by 2021.
How Dangerous Would a $15 Minimum Wage Be For Michigan?
How dangerous will a minimum wage hike be for Michigan?
Small businesses would struggle with a $15 minimum wage
hike, according to a new report.
Earlier this year, a group called the D15 Campaign, part of the Fight for $15
movement representing workers in a range of professions from fast food to
retail hosted rallies across the state advocating for a $15 minimum wage. At
present, the state’s $8.50 is scheduled to increase to $9.25 in 2018.
But by 2021, the state could see a net loss of 281,000
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.
Last year NFIB was successful in halting attempts by cities and
counties in Michigan to adopt higher minimum wages at the local level by passing state legislation that
prohibits such policies, but the fight continues as advocates threaten to take
higher minimum wages
