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Since 2014, 30 states and Washington, DC have increased their minimum wages. States increase their minimum wages in several ways. For example, 18 states and Washington, DC automatically adjust their minimum wages based on inflation. Some states raise their minimum wages in stages to reach a set number. Other states increase it all at once.
. . . In 22 states, including Washington, DC the number of jobs increased in the occupations in the year after a minimum wage increase. These areas average 8,666 more jobs in the occupations, an average increase of 2.7% in employment.
Nine states had decreases in employment for the occupations following minimum wage increases. These states averaged a loss of 2,156 employees or a 1.9% decrease in jobs.
Comparing changes in employment within the occupations for states that raised their minimum wages to those that did not can provide some insight into the impact of government pushing wages up.
Nineteen of the areas with minimum wage increases were divided up into three groups, states that raised their wages in 2010, 2015, or 2017.
The states within each group are wide-ranging, with different population demographics and growth rates, varying geographic regions, and economic profiles.
. . . Food preparation and service employment grew more on average for the 19 states that increased the minimum wage than for the states using the federal minimum wage.
The impact of minimum wage increases is less clear when looking at changes to statewide employment. The 2010 group had little difference in average growth in statewide employment between the states that raised the minimum wage and those that did not. The 2017 group had smaller average employment growth compared to federal minimum wage states. Average employment growth for the 2015 group was greater in the minimum wage increasing states than in the states without a minimum wage increase.
