New Survey: Does Minimum Wage Hike Help or Hurt?
April 22, 2015
New Survey: Does Minimum Wage Hike Help or Hurt?
Double Edged Sword: Helps Workers, Hurts Unemployed
Over 1/3 of Businesses Would Reduce Hiring If Wage Raised To $10.10
More Favorable View of Wage Hike Than in 2014
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OKLAHOMA CITY, April 22, 2015 - Express Employment Professionals today released a new study on raising the minimum wage and its effect on businesses, employees and the unemployed.
In March of 2015, Express Employment Professionals surveyed 837 business owners, HR professionals and employees about the positive and negative impacts of a minimum wage increase.
Of those surveyed, 59 percent said a minimum wage increase would be bad for U.S. businesses, down from 63 percent in 2014, while 66 percent believe it would be good for U.S. workers, up from 58 percent in 2014
Similarly, 70 percent said raising the minimum wage would have a negative impact on employers. While 70 percent also said it would have a positive impact on employees, 60 percent said it would negatively impact the unemployed. Additionally, 65 percent said it would negatively impact the long-term unemployed.
In general, a minimum wage hike was seen as hurting businesses and the unemployed, while helping workers who currently have jobs. Overall, views on raising the minimum wage are less negative than in the 2014 survey.
Business owners and decision makers were also asked if raising the minimum wage to $10.10 would cause them to reduce future hiring or let employees go. Over one-third, 36 percent, said it would cause them to reduce hiring, and 17 percent said it would cause them to lay off employees.
"A minimum wage increase cuts both ways, as this survey reveals," said Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City. "On the one hand, it could raise wages for some workers, but on the other hand it can mean layoffs. Because it also reduces the ability to hire, raising the minimum wage could mean zero wages for some.
"As I've said before, these are the considerations that must be properly weighed by policymakers before increasing the statutory minimum wage. Interestingly, we have seen some large companies raise their own minimum wages recently, indicating that they have calculated it's good business in their particular circumstances."
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If you would like to arrange for an interview with Bob Funk to discuss this topic, please contact Sherry Kast at (405) 717-5966.
About Robert A. Funk
Robert A. "Bob" Funk is chairman and chief executive officer of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has 725 franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than five million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.
About Express Employment Professional
Express Employment Professionals puts people to work. It generated $2.85 billion in sales and employed more than 456,000 people in 2014. Express ranks as the largest franchised staffing company and second largest privately held staffing company in the United States. Its long-term goal is to put a million people to work annually.