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Survey: 38% paying minimum wage will lay off workers if wage increased

March 19 2014

If the minimum wage were raised to $10.10 an hour, as President Obama has proposed, 38 percent of employers that currently pay employees minimum wage say that they would have to let some employees go to cover the cost, according to a survey released today by Express Employment Professionals.

Among the same group, 54 percent said they would reduce hiring, and 65 percent said they would raise prices on their goods and services.

Among all employers surveyed, including those who do not currently pay the minimum wage, 19 percent reported they would let employees go; 39 percent would reduce hiring; and 51 percent would raise prices.

“As with any such policy change, there are upsides and downsides,” said Express CEO Bob Funk. “But based on this survey, there’s no denying that raising the minimum wage will result in layoffs, reduced hiring, and higher prices at a large chunk of American companies. How severe will those effects be? That remains to be seen, but policymakers will certainly want to be mindful of this reality as they legislate.”

The February 2014 survey included 1,213 business owners and HR professionals in the United States, 230 of which reported paying their employees the current minimum wage.

Express Employment Professionals, based in Oklahoma City, ranks No. 7 on Staffing Industry Analysts’ list of largest U.S. staffing firms.


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Tim 03/19/2014 02:35 pm

The worst thing about raising minimum wage is that anyone above minimum wage typically doesn't get a raise at all. So when prices rise, even if you keep your job, you can't afford to survive, just hope to get laid off so you can draw food stamps, medicaid, HUD, and unemployment.

So even if you are earning $9 a hour because you have 5 years experience, new hired peoples will make $10 for 3 months, then after that experienced workers and newbies get paid the same. But let's say you are making $10 already, then prices go up 60% because they raise minimum wage. Now you have to make $16 an hour to pay your bills, but nope, you stay at $10.

So no matter how you look at it, raising minimum wage is just a tactic the government uses to get more taxes out of workers to pay off their old debts. It isn't helpful to the people in any way at all.

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