Study Shows States That Raised Their Minimum Wage Experienced Faster Job Growth

raise-minimum-wagePeople who oppose the minimum wage always try to paint any increase as this “massive job killer” that will undoubtedly leave millions of Americans unable to find work.

This belief, as most sane people are well aware of, is based on complete nonsense.

In fact, companies like GAP, which recently announced that they would be raising their minimum wage to $10 an hour, has already noticed an increase in applicants since their announcement.  And applying a little common sense to that fact, more applicants means a better selection of employees, which then often leads to better production (and lower turnover) for the company.

Better production, happier employees, lower turnover – all lead to better revenue.

Well, a study released by the Center for Economic and Policy Research tracked the job growth of 13 states (Connecticut, New Jersey, New York, Rhode Island, Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont, and Washington state).  All of these states saw increases to their state’s minimum wage, either by legislation (Connecticut, New Jersey, New York, Rhode Island) or through inflation increases (Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont, and Washington states).

What they found was that all but one of those thirteen states saw job increases.  Not only that, but 9 of the 13 saw increases above the national average.

According to the study:

“Of the 13 states that increased their minimum wage in early 2014, all but one (New Jersey) are seeing employment gains. Furthermore, nine of the remaining 12 states are above the median for this period. The average change in employment for the 13 states that increased their minimum wage is +0.99% while the remaining states have an average employment change of +0.68%.”

So much for that whole “a higher minimum wage kills job creation” argument.

Now, does this study tell us that without a doubt raising the minimum wage will increase job production?  No.  There are states above the national average for job creation that didn’t see increases to their minimum wage.

But what it does tell us is that raising the minimum wage doesn’t hurt job creation, and in fact it might actually help it.

Besides, that’s just what common sense tells us.

When employees are paid better, they tend to work harder.  They’re more loyal, productive and have better attitudes.  This all helps the company save money (lower turnover) and also helps increase revenue (better production).

But even with all of this evidence showing positive links to minimum wage increases, there are still fools out there who oppose even the minimum wage itself, much less any talks of raising it.


Allen Clifton

Allen Clifton is a native Texan who now lives in the Austin area. He has a degree in Political Science from Sam Houston State University. Allen is a co-founder of Forward Progressives and creator of the popular Right Off A Cliff column and Facebook page. Be sure to follow Allen on Twitter and Facebook, and subscribe to his channel on YouTube as well.

Comments

Facebook comments

  • Gord S.

    if i make more money i spend more money!

    • gian keysTOOEASY flat mom

      FOX “news” now decrees U as a communist muslim Kenyan from mars

  • Scott

    Please where is the link to the actual study!!

    • Joe

      The link in the middle of the story that says “According to the study”

  • Sandy Greer

    I favor raising Minimum Wage, and would have it $15 (at least) But seems to me Clifton is counting his chickens and reading what he wants of the report.

    People should follow the blue link (According to the study) look at the chart, and draw their own conclusions.

    What I found most interesting is California topped the list in job growth. Didn’t
    raise Minimum Wage. AND disparaged as having such high taxes the rich are forced to flee – and take their businesses with them.

    Take that, Texas! Gov Rick Perry, stay home! :-O

    • J mccarthy nude insanity

      delightfully,,,,,,,,,,,,, California ( with a democrat governor) now has a SURPLUS after a LONNNNG time running the usual regressive republican deficits– yet the rightwing media outlets seem 2 not mention this: Perhaps they are worried about Benghazi and Kenya?

  • Eg Kbbs

    In a parallel, I live in MO whose legislature is trying to get large tax cuts for industry at the sake of any sort of public service (they even took road maintenance off the budget so that next month we get to vote for a sales tax for road maintenance or let the roads fall further into disrepair). All in an attempt to emulate our neighbor to the southwest who did similar and now is in a total mess; and incidentally had a comparably slow economy after doing so.

  • FD Brian

    “When workers have more money it’s better for the economy”…sincerely Captain Obvious.