2. Unemployment Unemployment for all workers 10.2% unemployed Teenage, unskilled workers 27.6% unemployed (61 year high)
3. Effects of Minimum Wage “Over the last three years, there has been a 41% increase in the minimum wage.” “The rise has priced the unskilled worker right out of the labor market.” Mark Perry, Professor of Economics University of Michigan -
9. Economic Research STUDY: Minimum Wages and Employment Reviewed more than 100 academic studies Found “overwhelming evidence” that minimum wage increases unemployment for the least skilled workers Almost all studies providing credible evidence point to negative employment effects David Neumark, Professor of Economics, UC Irvine William Wascher Economist, Federal Reserve -
10. Research & Public Opinion A majority of economists agree that minimum wage is harmful A majority of the public favors an increase in minimum wage 83% - Gallup Poll, 2006
11. Summary Minimum wage is intended to help low skilled, generally low income workers. Low skilled workers are losing their jobs with each increase in minimum wage. In a complex economy it can be difficult to see the impact of minimum wage, but as long as the public supports it, congress will continue to increase it.
Editor's Notes
1938 – Fair Labor Standards ActUnemployment rate for teenage workers is currently at a 61 year high, with over 27% unemployed.Unemployment rate for all workers: 9.5% (October).