8 States To Raise Minimum Wage

minimum wage increaseThe minimum wage is about to get a little better.

Or at least in eight states which have announced plans to increase the state minimum wage. The states include Colorado, Montana, Ohio, Oregon, Washington, Arizona, Florida and Vermont. The first five have already announced the specifics of the minimum wage increase, while the last three will do the same in the coming weeks

The hike is highest in Washington state, which is seeing a rise in $0.37 to result in a minimum wage of $9.04. According to CNN Money, the changes are being made to comply with laws that require states to keep pace with inflation. Lower than the five states that have announced their plans, the federal minimum wage stands as it has since 2009 at $7.25, which translates to $15,000 a year for a full-time worker. That represents a figure below the poverty rate.

As The Huffington Post reports, Washington's bump will make it the first state to peg its minimum wage above $9. The rise to $9.04 a year will result in an additional $770 per year for a full-time minimum wage worker. In speaking to HuffPost, analysts are crediting Washington's 1998 initiative to peg minimum wage to the national Consumer Price Index. The idea is that fluctuations in wages will be dictated by inflation.

"At least these low-wage earners will maintain their purchasing power and go purchase things," said Jeff Johnson, president of the Washington State Labor Council, an affiliation of unions and labor groups, who wrote the Washington initiative. "The money will go right back into the economy," he told HuffPost.

But the model may have unintended consequences, according to a report from The Daily Telegraph. Studying recent minimum wage hikes in the United Kingdom, the Telegraph cites work from the Low Pay Commission which notes an adverse impact on youth workers. The findings should be applied universally and are not exclusive to the British labor sector.

"We don't know what the minimum wage effect is in isolation from the recession effect," Tim Butcher, the commission's chief economist told the Telegraph. "We do know recessions affect young people as employers operate first-in, first-out and look for people with experience."

The report was released as the United Kingdom readies minimum wage hikes. Taking effect this past weekend, the minimum wage for 18-to-20-year-olds is now £4.98, up from £4.92. For 16-to-17-year-olds, the new rate is £3.68, up from £3.64.

Official stats showed that roughly 1 million of the 2.5 million people officially counted as unemployed in the U.K. are between the ages of 16 and 24.

The commission said it was planning on taking a closer look at the direct link between minimum wage policy and youth unemployment.

According to the National Employment Law Project, the announced U.S. wage hikes are as follows:

1. Colorado: +$0.30 to $7.64

2. Montana: +$0.28 to $7.65

3. Ohio: +$0.30 to $7.70

4. Oregon: +$0.30 to $8.80

5. Washington +$0.37 to $9.04


8 States With Highest Minimum Wage

by 24/7 Wall St.




Next: Is The Problem High Unemployment Or Highly Unemployable People?







Stories from 24/7 Wall St.


Dan Fastenberg

Dan Fastenberg

Associate Editor

Dan Fastenberg was most recently a reporter with TIME Magazine. Previously, he was a writer for the Thomson Reuters news service's Latin America desk. He was also a reporter and associate editor for the Buenos Aires Herald while living in South America.

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DANNY

what about new york, it was not mention about wages increased, what a bummer

November 16 2011 at 8:58 PM Report abuse +1 rate up rate down Reply
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October 10 2011 at 5:52 AM Report abuse +1 rate up rate down Reply
philsun73

A minimum wage should be just that. A minimum wage. It should be meant for those beginning workers such as school kids working summer jobs etc. And inexperienced workers who can get a raise as work performance merits it. Guess what? I used to work. (80 years old now.) Minimum wage was $2 an hour. Guess what? I produced. Which means that I made money for the company. Guess what? I asked for, and got the money that I demanded. Minimum wage ws never a factor, as long as you got what yoi were worth. The minimum wage of today is inflationary, and it leaves those Seniors on a fixed income, who receive no increses, in a bigger financial bind. Seniors take note* And vote those out, who vote you out.

October 07 2011 at 5:18 PM Report abuse rate up rate down Reply
donhellbound

YOU HAVE TO HAVE A JOB IN ORDER FOR THIS TO HELP YOU,GOOD LUCK

October 07 2011 at 4:36 PM Report abuse rate up rate down Reply
Taina

I will agree with one thing, these people will spend all their money,

October 07 2011 at 3:38 PM Report abuse rate up rate down Reply
Stephen

Baloney, Tony! "Business" has historically exploited, abused and underpaid workers in veery field. Democrats, who you call "Dems" because you can't spell the whole word, have been the only party on the side of working Americans for more than a century. There is no evil greater than that of unfettered capitalism - not fascism, not socialism, not communism - UNFETTERED capitalism is the most ruthless, Darwinian (look it up) form of government imaginable. WE should have capitalism - but only after we have Americanism - which carefully and appropriately limits the swinish greed and abuse of power that unfettered (look that up too, Tony) is host to.

October 07 2011 at 3:08 PM Report abuse rate up rate down Reply
Tony

Im all for helping people out but when you force a min wage down the throats of business you put more people out of work, just common sense in which Dumbs, I mean Dems, usually dont understand.

October 07 2011 at 12:25 PM Report abuse -2 rate up rate down Reply
2 replies to Tony's comment
sam

On the other hand,when workers earn more money, they are more likely to spend more which benefits the whole economy, including smaller businesses - something that the Regressives/Republicans have never understood. Investments must be from the top down, but the economy grows from the bottom up when workers earn enough to spend on necessities and occasionally a big-ticket item. Destroy the middle class and working class, and you destroy the US economy. Not that big business cares, they are multinational and can get their money outside the US. We're just a big slave labor camp to them.

October 07 2011 at 1:05 PM Report abuse +3 rate up rate down Reply
ferouz

there is nothing common about your common sense.

October 07 2011 at 3:13 PM Report abuse +1 rate up rate down Reply
kjsiii

Well, let's see--8 states are raising the minimum wage when there are no jobs, so where is the benefit? Furthermore, since so many people are complaining about illegal aliens working for less, doesn't this create more of an incentive to hire an illegal, pay him less, and make sure it's "off the books"?

October 07 2011 at 12:05 PM Report abuse -1 rate up rate down Reply
1 reply to kjsiii's comment
Tony

Your point is moot since Illegals should Not be working.

October 07 2011 at 12:26 PM Report abuse +1 rate up rate down Reply
tideh

Just because someone isn't as educated doesn't mean they have to live in total poverty what a group of awful people we are becoming. Some of these people are extremly hard working and you make them sound like a burden to society. Think about that the next time you go into a grocery store or any kind of sevice job and look at the person that is helping you out. Some of these people probably work harder than most people do especially if they have to put up with the public.

October 07 2011 at 11:41 AM Report abuse +4 rate up rate down Reply
1 reply to tideh's comment
sam

You are right, tideh. The working class is what made this country prosper after World War II, but now the extreme right wing wants to go back to the days of the robber barons and sweat shops, because they want to please their masters, the wealthy and the corporations. They have forgotten that the workers are the greatest asset this country had, and have been gradually destroying it.

October 07 2011 at 1:10 PM Report abuse +3 rate up rate down Reply

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