Labor advocates are hoping that an increase in the minimum wage to $15 an hour next year will help to keep more jobs in America, but some businesses have already voiced concerns that it will lead to job losses.
The U.S. Department of Labor estimates that in 2021 alone, more than 2 million jobs will be lost, mostly in fast-food and retail, according to the nonpartisan Economic Policy Institute.
“The minimum wage has been a massive failure,” said Chris Edwards, director of the Center for Economic and Policy Research.
“And if you are an employer and you are seeing a reduction in your workforce, then you are going to see a significant increase in employee turnover.”
The minimum wages in the United States have been rising, but not enough to offset the losses that the minimum wages are causing.
It is currently $7.25 an hour.
The average worker making $15 per hour would be making less than $1,600 annually, and would be worse off than a worker making that rate who makes $6,500.
The wage gap is so wide that it would mean nearly half of all workers would be losing their jobs if the minimum hourly wage was increased to $13.
The average wage in the U.K. would be $15.
The minimum wage is currently £6.50 an hour, which is around $8.50 in the country.
Edwards estimates that the U,S.
wage gap would be about $5.3 billion in 2021.
While the minimum has helped keep millions of Americans in their jobs, some businesses are wary that the federal minimum wage should not be higher.
“We have a lot of workers who would like to work at a higher wage, but if we raise the minimum, they’re going to leave,” said Roberta Sklar, a senior vice president at the National Retail Federation.
“That’s just going to make it harder for workers to get hired.”
A higher minimum wage could hurt businesses because of lower profit margins and higher costs of doing business.
It could also lead to higher prices for consumers.
“I don’t think people really want to pay more money for food, but that is what the minimum price is for,” said Tom Hester, president of Hester Industries, a consumer goods manufacturer in Ohio.
“It’s like the old saying that if you get in a car accident and you have a bumper sticker that says ‘pay me $100 to be able to go to the hospital,’ that’s going to affect the insurance company.
And it will affect the cost of the insurance policy.”
The federal minimum is set by Congress and is set to increase to $9 an hour by 2021.
The House passed a bill last month that would raise the federal wage to an hourly rate of $10.10 an hour in 2021, and then increase to the $15 federal minimum in 2024.