How the $15 wage is already killing jobs in Seattle

Unintended consequences.

Via NY Post: Spiking the minimum wage statewide may appeal to a Democrat eyeing a future run for national office. But it’s a bad idea for New York.
Don’t believe us? Look how it’s working out in real life at a town already en route to a $15 minimum — Seattle. An American Enterprise Institute report sums up the results. Spoiler alert: It’s not pretty.
Seattle passed its $15 law in June 2014. Starting last April, it raised the minimum from $9.32 (the state minimum wage) to $10 for certain business, $11 for others.
Increases to $12, $12.50 and $13 an hour began taking effect for most employers this Jan. 1. The jumps will continue until the minimum hits the full $15 an hour in 2017 for some before it’s universal in 2019. Yet even the early impact is harsh.
The AEI study, worked up from Bureau of Labor Statistics’ monthly surveys, shows that, between April and December last year, Seattle saw the biggest employment drop in any nine-month period since 2009 — a full year into the Great Recession.
The city unemployment rate rose a full percentage point.
Before the minimum-wage hikes begin, Seattle employment tracked the rest of the nation — slowly rising from the 2008-09 bottom. But it started to plunge last spring, as the new law began to kick in.
sawant2
Furthermore, Seattle’s loss of 10,000 jobs in just the three months of September, October and November was a record for any three-month period dating back to 1990.
Meanwhile, employment outside the city limits — which had long tracked the rate in Seattle proper — was soaring by 57,000 and set a new record high that November.
Seattle is learning that it can’t unilaterally ignore basic economics. Businesses adapt to government dictates. To survive mandated pay hikes, they lay off employees, or avoid new new hires to control costs.
Read the whole story here.
h/t Hot Air.
DCG

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japoa
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Not too many white people in that pic ! Woman under armpit of sign carrier might be white , but that’s about it . Maybe Latino ? Liberal lunacy at it’s best

 
pm
Guest
pm

This is great news for working people! Finally they will be earning a just wage.
Sure there might be some minor difficulties with the sudden increase. A four year phase in would have been better. However, the Business’ that can’t afford to pay a living wage are not sound anyway. Why subsidize an inefficient business with subhuman wages? Why should people suffer so that a badly managed corporation can stay afloat? The well run companies will easily adjust and make higher profits in the long run.

 
squirrelmistresssquirrelmistress
Guest

it’s too bad that a minimum wage job can’t support a family, sometimes that’s the only job people can get.

 
upaces88
Guest
upaces88

This is soooo irresponsible to do this!!!
IF you don’t make enough $, you go to a trade school,a Community college; and/or go on to get a degree.
I have shopped at the same Walmart for years.. They had to lay people off.
They have fewer people now that have to do the jobs of “3-4” people to afford to keep the store open.

 
Anonymous
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Anonymous

Thanks, Democrats!!

 
greenworxx
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greenworxx

In many areas of the country, there is a shortage of people in the trades. Those who can work in plumbing, heating/AC, metal fabrication, pipe fitters, master craftsmen in woodwork, stonework, etc. can make a better than average living. Most community colleges provide training at a bargain, but apparently too many individuals are spoiled by the “handouts” and frankly, just too lazy and/or cognitively ill equipped to motivate and apply themselves to anything other than low level service jobs. There’s nothing wrong with service jobs, as they were originally meant for high school and college students to gain basic work… Read more »

Jack
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Jack

After getting out of the Navy at 24 I went to college on the GI Bill. I got $190 a month. Apartment rent was $90 and was increased to $110 and it was a crap hole of a place. Food and gas wasn’t covered by the remainder so I worked every day at one of four jobs that I found and maintained during my term in college. I realized that if I went to school full time and worked I could get my degree in 3 years so I borrowed money on loan programs when I needed it, I worked… Read more »