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U.S. figures counter objections that increase in minimum hourly rate causes job losses

MIKE DRUMMOND

mdrummond@charlotteobserver.com

States that have boosted their minimum wages far above the federal floor of $5.15 have seen job growth keep pace with, if not exceed, national averages, federal data show.

U.S. Bureau of Labor Statistics figures poke holes in a key business lobby argument, even as they raise questions over how the wage should be adjusted at the national level.

The N.C. House and Senate on Thursday approved raising the hourly minimum wage to $6.15, from $5.15. Assuming they iron out their differences and approve the final plan, the state would join a growing number to exceed the federal minimum wage.

In Congress and the Carolinas, business interests have argued for nearly a decade that raising the wage would kill jobs, as employers would halt hiring or drastically reduce hours.

The National Federation of Independent Business is one of the strongest opponents of raising the minimum wage. Gregg Thompson, the trade organization’s N.C. director, said the proposed increase would cost employers an additional $1.30 per employee when workers compensation, taxes and other wage-related costs are factored.

Raising the state’s minimum wage, he says, "will cause job losses."

As of this month, 20 states and the District of Columbia have minimum wages higher than $5.15. Only a handful of states had their own minimum wage laws a decade ago. (more…)

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