State Minimum Wage Hikes Already Passed Into Law Expected To Cost 2.6 Million Jobs, New Study Finds

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Even though we know that Bernie and his alt-left compatriots will never tire of their endless “Fight for $15” no matter how much data we throw at them, we thought we would go ahead and highlight yet another economic study detailing the devastating job losses that will result from minimum wages hikes that have already been passed in states all around the country.

The latest study comes from the American Action Forum (AAF) and estimates that 2.6 million jobs will be lost around the country over the next several years as states phase-in minimum wage hikes that have already been passed. Here are the key takeaways:

  • In isolation, the minimum wage increases in 2017 will cost 383,000 jobs;
  • The entire minimum wage increases currently phasing-in will cost over 2.6 million jobs; and
  • Each job lost only leads to an extra $6,900 in total wage earnings across all workers.

Minimum Wage

Below are the 14 states where the minimum wage is set to increase in 2017 as well as the entire increases anticipated for states where large increases have been passed but will be phased in over several years.

Minimum Wage

First, AAF estimates that the minimum wage increases planned for 2017 alone will result in 383,000 job losses. The analysis assumes that each 10% increase in wages results in a 0.3% – 0.5% decline in the net job growth rate.

While proposals to raise the minimum wage are well intended, it is important to consider the negative labor market consequences. Meer & West (2015) find that raising the minimum wage reduces job creation. Specifically, they find that a 10 percent increase in the real minimum wage is associated with a 0.3 to 0.5 percentage-point decline in the net job growth rate. As a result, three years later employment becomes 0.7 percent lower than it would have been absent the minimum wage increase.

While the Meer & West (2015) findings may not seem very problematic, when taking into account the magnitude of the minimum wage increases and the number of states implementing new laws, the negative labor market consequences add up. Let’s first examine the minimum wage hikes of 2017 in isolation, without considering previous or future minimum wage increases under the new state laws.

Minimum Wage

Of course, for most states that have enacted minimum wages increases, 2017 hikes are just one component of multi-year increases. Below is a look at how much minimum wages are expected to increase overall after they’re fully implemented.

Minimum Wage

Using the same correlations between minimum wage increases and net job losses noted above, AAF estimates that 1.8 million jobs will be lost once current increases are fully implemented. 

Minimum Wage

As if that weren’t enough, several states, including California, passed their current minimum wage laws several years ago. Therefore, adding in jobs that have already been lost from current minimum wage legislation, AAF estimates that a total of 2.6 million jobs will be lost courtesy of misinformed liberal agendas.

So good luck with the continued crusade, Bernie! If you get hungry along the way, we highly recommend you try out a sandwich from this new “Big Mac ATM” which comes with McDonald’s special sauce and all the fixins but requires exactly 0 of your minimum wage workers to cook.

Minimum Wage

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10 thoughts on “State Minimum Wage Hikes Already Passed Into Law Expected To Cost 2.6 Million Jobs, New Study Finds”

    1. That’s the great part – robots don’t party, so they don’t miss any work due to a hangover. . .

  1. Do y’all truly not see the humor in all this?

    I admit, it’s a bit dark, but it’s hilarious.

    Here we are, on the brink of worldwide economic collapse… and unskilled kids with degrees in gender studies are DEMANDING wages that takes some people many years to attain… and which for some haven’t increased in decades… while raising the very same SJWs which are now destroying the world they live in.

    And which, by the very nature of their demands is going to decrease the available jobs thereby necessitating a further increase in “minimum” wage in order to keep the taxes flowing.

    It’s hilarious.

    I’m watching this happen in my own town. They raise the taxes and people leave. So they raise the taxes again. LMAO! There’s already a recommendation out on the military base thirty miles away for the soldiers not to live here. So to compensate for that they raised the taxes again.

    F*ckin’ hilarious.

    1. I used to work in fast food, and for minimum wage – it sucked ass.

      There was no way I could make a payment on a brand-new car, plus pay rent, buy food, clothing, etc., on that crappy wage.

      So. . . I whined and cried and jumped up & down and protested and picketed and DEMANDED that the government use it’s guns to force my employer to give me the unnegotiated (and non-negotiable) wage I felt I deserved. . .

      Oh, wait – that’s what the daycare generation 8th Place winners did.

      What I did was, I went out and learned a more marketable set of skills, then leveraged those new skills into a better-paying job. No tantrums, no guns. . .
      Haven’t worked in fast food or for MW since.

      Here’s the kicker.
      Since it’s already been established that threatening an employer with mortal danger is an appropriate and acceptable way to get a raise. . . why stop at $15? Why not $25, or even $50?
      Hell, why not simply make the minimum wage $100/hr, bringing instant prosperity to everyone everywhere all at once!

      A crappy part-time job that pays $400 or more per shift? COUNT ME IN, BABY!

  2. I get tired of hearing about the doom and gloom caused by living wages. The real problem is employers racing to the bottom and paying minimum wage for skilled labor. If you don’t think it takes skill to learn all the responsibilities dumped on even a simple “cashier” you haven’t started a new job in a long time. You are not just scanning and punching buttons. You are also responsible for inventory control, reconciliation of your transactions, customer service, janitorial duties, answering and directing phone calls, merchandising, etc. Let’s keep it in perspective.

  3. The RISE OF THE MACHINES that are owned by the Globalists. Sooner or later the subsistence payments to the indigent masses will be discontinued, and the “unwashed” masses will be nothing but a blight on the earth and a detriment to it’s environmental sustainability – to be eradicated.

  4. These liberal idiots just don’t get it. They want instant results with zero effort on their part. They think that everyone should be paid a “living wage” no matter if they are some unskilled laborer or if they have a college degree in ass-hats and pole smoking. They never consider that different jobs are worth different pay. A job that a monkey could do is a minimum wage job. And a job requiring skill and years of school and training will obviously pay more. That’s how it works.
    If you artificially raise minimum wage beyond what the employers can afford, they are going to respond with job cuts, raising prices and cutting hours. And at the end of the day, labor will cost the same, but be done by fewer people, forcing them to work much harder for a minimal increase in pay, and ultimately the cost of living will catch up to this wage hike and the net increase in pay will be zero.
    So these fools are fighting for harder work, a smaller workforce and in the long run, no increase in real wages. Brilliant.
    And it’s not like this is a theory or a guess as to what will happen. It’s already happening. You can see it happening. People are losing their jobs because of this wage increase. You can’t argue with the facts.
    Some of these wage increases aren’t too high. But some of them were as high as 60%. You can’t just raise the cost of labor by 60% across the board and not expect companies to react by making cuts and changes to offset the increase.
    The only other thing that makes sense is that they are trying to destroy job growth on purpose. With this much data and evidence that arbitrarily jacking up minimum wage is bad, you would have to completely ignore all the data and any logic as to what would happen, or you want less people in the workforce and this is how to accomplish that. Nothing else makes sense. Why else would anyone shoot themselves in the foot, and when that doesn’t work, shoot themselves in the other foot.

  5. Liberals know that minimum wage hikes cost jobs. Do not forget they are the party of welfare. It fits their socialist agenda. they work to destroy capitalism so that they can say we told you so.

  6. Time to train in janatorial skills. The job a robot won’t do. But in Australia were $15 is min wage they do it with 1/2 the help or less than in America. In France were they sell the small burger most. No money in them. They make there money from the side bar. Any one for a salad & wine with there burger. The wine is good for killing the taste of the burger.

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