Incremental $15 Minimum Wage in D.C. Has Led to Loss of Jobs

Incremental $15 Minimum Wage in D.C. Has Led to Loss of Jobs

By: Daniel Steingold | August 28, 2016

A warning sign for $15 an hour minimum wage advocates: it is believed that pursuing such a model in D.C. has led to the loss of a number of jobs.

From 2014 to July 2015, the minimum wage in the nation’s capital increased from $8.25 to $10.50. The outcome from just this rise in wages is alarming.

For example, it has been found that just since the beginning of 2016, D.C.’s restaurant industry has lost about 1,400 jobs.

In addition, a report that came out in May showed that 48 percent of D.C. businesses had already cut staff or reduced hours to deal with the recent increase in minimum wage.

To even further show the impact of the rise of wages, the restaurant sector on the suburbs outside of D.C. saw an increase of 2,900 jobs since the new minimum wage law was implemented.

Washington D.C.’s minimum wage will continue to rise incrementally until it reaches $15 an hour in 2020. At the beginning of this past July, it increased again to $11.50 an hour.

The reduction in jobs sets a new precedent, according to the American Enterprise Institute (AEI).

Jeremy Adler, AEI’s communications director, said in a statement, “This new report should serve as a warning to cities and states considering major minimum wage hikes like D.C.’s. The statistics don’t lie – they show a clear correlation between big minimum wage increases and jobs losses. It’s a reminder that there are serious consequences to these misguided labor policies, and that following D.C.’s example puts workers’ economic future at risk.”

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