The minimum wage in competitive markets and markets with. But the cbo warned that raising the minimum wage could also cause employers to lay off lowwage workers or hire fewer of them, reducing overall employment by about 500,000 jobs, or about 0. Even then theres a clear tradeoff a minor fall in jobs. Serious analysis has called cbo s assumptions into question. Cbo predicts job losses from minimum wage hike the congressional budget office is projecting job losses as a result of a proposed federal minimum. Both hikes would have similar, but more muted, effects on wages and employment. Congressional budget office report on minimum wage c. The troubling fine print in the claim that raising the. After 2025, the minimum wage would be adjusted annually to account for changes in the median hourly wage of all workers. Cbo says raising minimum wage will lead to job cuts. In addition, the bill would repeal the separate federal minimum cash wage for workers who receive tips by.
The effects of a minimumwage increase on employment and. The cbos estimates on the impact of a minimum wage increase were done in response to a request by sen. For this report, cbo examined the effects on employment and family income of two options for increasing the federal minimum wage see the figure below. The minimum wage hike likely cometh, but destruction isn. Congressional budget office based on monthly and annual data from the census bureaus current population survey. The nominal federal minimum wage has risen over the years. Congressional budget office, using monthly and annual data from the census bureaus current population survey. Cbos minimum wage report predicts job losses the new. The cbo, weighing in on a plan to hike the federal minimum wage, looked at two increases.
The minimum wage hike likely cometh, but destruction isnt certain the cbos report on the minimum wage gave both liberals and conservatives valuable ammunition. Senator thune on minimum wage bill senator john thune rsd argued against passage of s. Use the interactive tool to explore how various policies to increase the federal minimum wage would affect earnings, employment, family. The cbos calculation that a minimumwage increase would cost 500,000 jobs is based on a proposal by sen. The effects on employment and family income of increasing.