On Tuesday, NFIB NY released a study which finds that increasing the state’s minimum wage will result in the loss of 22,000 jobs over 10 years. The study also finds that the cost of hiring entry-level labor can be expected to increase between 17 and 66 percent, depending on the rate of inflation.
NFIB New York State Director Mike Durant said:
“Simply, raising the minimum wage will not create jobs. It will affect the smallest businesses that can least afford higher labor costs and they’ll respond by finding ways to reduce or limit the number of jobs they create.”
We are inclined to agree. Before increasing wages in this manner, we would like the state to take steps to provide regulatory relief for businesses. If our economy were thriving, it would be much easier for advocates to make the case that a minimum wage increase is justified. Right now, from the perspective of the business community, such an increase is likely to do much more harm than good.