Quote:
Originally Posted by Slava
Sure, but the majority of the minimum wage jobs are in the service industry,and that is where we are seeing the significant job losses. It's directly attributable to the increased wages and honestly, was entirely predictable. Now that the evidence is coming to bear though, you seem to want to shrug it off or try to attribute it to other factors?
It's intellectual dishonesty at it's finest. The wages were going to increase and people told them that this will result in job loss. The increase goes through, jobs are lost and now the plan is to say "it shouldn't work that way" or "the small business just doesn't want to eat it" and we're cool with that?
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But 25,7000 jobs lost weren't minimum wage jobs. That number is the entire service sector, there were more jobs lost in Finance and Insurance than there were in Accommodations and Food Service, and I don't believe a minimum wage hike is affecting the Finance industry very much. There is also the effect that as better jobs become available, especially in the good-producing sector than people will leave the lower paying positions to move up.
I am not trying to argue that the minimum wage has had no effect, you can tell with rising prices at restaurants and lower staffing levels that it has. How much the minimum wage is directly attributable to job losses is a lot harder to define. Maybe for the 8,300 lost in the A&F industry, but I think its much more of a stretch for the whole service sector.