New report shows minimum wage increase would cut jobs

By WEEK Producer

New report shows minimum wage increase would cut jobs

February 18, 2014 Updated Feb 18, 2014 at 11:35 PM CDT

WASHINGTON, D.C. -- A new non-partisan report shows that a popular Democratic plan to raise the federal minimum wage could cost thousands of jobs.

The Congressional Budget Office report indicates that raising the federal minimum wage from seven dollars and 25 cents to 10.10 an hour would likely result in more that 16 and a half million people seeing a pay bump by 2016.

However, it also calculated that such a hike could cut employment by about half a million workers nationwide.

The CBO recommends a smaller hike like nine dollars an hour, jobs would still be cut, but to a smaller effect of 200 thousand.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.