How Many Jobs Would the $15 Minimum Wage Kill?

By Michael Saltsman. Excerpts:

"a new report from the Congressional Budget Office finds the policy could leave nearly four million workers without a job.

This week’s analysis is an update of CBO’s 2014 analysis of a $10.10 minimum wage, which said one million workers would be pulled out of poverty at the cost of half a million jobs."

"CBO finds a $15 minimum wage would pull 1.3 million workers out of poverty at the cost of 1.3 million jobs in the median scenario, and 3.7 million jobs in the worst-case scenario."

"The CBO’s conclusions, based on a review of dozens of empirical studies, even suggest the title of the Democrats’ bill is a misnomer. The Raise the Wage Act would reduce real family income by $9 billion once phased in, as reductions in employment (among other impacts) offset the increase in some workers’ pay.

The estimated job loss from a $10 minimum wage—100,000 in the worst-case scenario—is more modest this time around. Thanks to natural wage growth and a tight labor market, thousands of businesses offer a starting wage of $10 or more, with no federal mandate. (Some states and cities, such as California and New York, have independently enacted new wage mandates; the CBO’s analysis doesn’t account for job losses in areas unaffected by the federal legislation.)"

"The CBO explains that some displaced workers could face long-term harm “if a minimum-wage increase keeps them from developing skills.” The 19.9% unemployment rate among young black Americans is still more than five times the national rate. And more than 50 counties still have an unemployment rate of 7% or higher."