States That Raised Minimum Wage See Faster Job Growth, Report Says
>by: Scott Neuman
Seattle Mayor Ed Murray (right) and Seattle City Council President Tim Burgess cut a cake to celebrate city’s raised minimum wage. Ted S. Warren/AP
New data released by the Department of Labor suggests that raising the minimum wage in some states might have spurred job growth, contrary to what critics said would happen.
In a report on Friday, the 13 states that raised their minimum wages on Jan. 1 have added jobs at a faster pace than those that did not. The data run counter to a that said raising the minimum wage to $10.10 an hour, as the White House supports, would cost 500,000 jobs.
“In the 13 states that boosted their minimums at the beginning of the year, the number of jobs grew an average of 0.85 percent from January through June. The average for the other 37 states was 0.61 percent.
“Nine of the 13 states increased their minimum wages automatically in line with inflation: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington. Four more states — Connecticut, New Jersey, New York and Rhode Island — approved legislation mandating the increases.”
The AP notes: “[The] state-by-state hiring data, released Friday by the Labor Department, provides ammunition” to the camp in favor of raising the minimum wage.
“Economists who support a higher minimum say the figures are encouraging, though they acknowledge they don’t establish a cause and effect. There are many possible reasons hiring might accelerate in a particular state.
” ‘It raises serious questions about the claims that a raise in the minimum wage is a jobs disaster,’ said John Schmitt, a senior economist at the liberal Center for Economic and Policy Research. The job data ‘isn’t definitive,’ he added, but is ‘probably a reasonable first cut at what’s going on.’ “
There are competing schools of thought among economists on the impact of raising the minimum wage. As : “Some studies, notably those lead by UMass Amherst economist Arin Dube, argue that there are no adverse employment effects from small increases in the minimum wage. Other studies, notably those lead by University of California Irvine economist David Neumark, argue there is an adverse effect.”
says: “America’s minimum wage has long been low by international standards, equalling just 38% of the median wage in 2011, close to the lowest in the [The Organization for Economic Co-operation and Development] OECD. Congress changes it only occasionally, and in the interim inflation eats away its value. The wage was last raised, to $7.25 per hour, in 2009. Since then its real value has slipped back to where it was in 1998.”
Scott Neuman works as a Digital News writer and editor, handling breaking news and feature stories for NPR.org. Occasionally he can be heard on-air reporting on stories for Newscasts and has done several radio features since he joined NPR in April 2007, as an editor on the Continuous News Desk.Neuman brings to NPR years of experience as an editor and reporter at a variety of news organizations and based all over the world. For three years in Bangkok, Thailand, he served as an Associated Press Asia-Pacific desk editor. From 2000-2004, Neuman worked as a Hong Kong-based Asia editor and correspondent for The Wall Street Journal. He spent the previous two years as the international desk editor at the AP, while living in New York.As the United Press International’s New Delhi-based correspondent and bureau chief, Neuman covered South Asia from 1995-1997. He worked for two years before that as a freelance radio reporter in India, filing stories for NPR, PRI and the Canadian Broadcasting System. In 1991, Neuman was a reporter at NPR Member station WILL in Champaign-Urbana, IL. He started his career working for two years as the operations director and classical music host at NPR member station WNIU/WNIJ in DeKalb/Rockford, IL.
Reporting from Pakistan immediately following the September 11, 2001 attacks, Neuman was part of the team that earned the Pulitzer Prize awarded to The Wall Street Journal for overall coverage of 9/11 and the aftermath. Neuman shared in several awards won by AP for coverage of the December 2004 Asian tsunami.
A graduate from Purdue University, Neuman earned a Bachelor’s degree in communications and electronic journalism.