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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.