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National Restaurant Association - How many jobs would be lost under a $10.10 minimum wage?

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How many jobs would be lost under a $10.10 minimum wage?

New studies focusing on four states show that a mandatory minimum wage increase would result in tens of thousands of lost jobs in each state, as well as significantly increased costs to taxpayers.

The studies, released this week by state restaurant associations in Georgia, Missouri, Pennsylvania and Wisconsin, looked at the impact of increasing the minimum wage to $10.10 in each of those states. The research was conducted by Trinity University economist David MacPherson, who used U.S. Census Bureau data to determine a $10.10 minimum wage would cost each state the following number of jobs:

  • Georgia: 21,460
  • Missouri: 15,705
  • Pennsylvania: 31,018 
  • Wisconsin: 16,596 

Females and those with less than a high school education would be among the groups hit hardest, and job losses would be highest in the arts, entertainment, recreation, accommodations and food services industries, according to the reports.

“As our state’s economy begins stabilizing and adding jobs, now is not the time to prevent hiring and squeeze business owners’ already razor-thin bottom lines,” said Karen Bremer, executive director of the Georgia Restaurant Association. “We should focus on common-sense solutions that create jobs and promote opportunities for workers of all experience levels. Across the board wage increases will hurt those who need help the most.”

In addition to lost jobs, the wage increase would place a heavy burden on taxpayers, who’d foot the bill for increased wages and compensation costs for public employees. MacPherson’s studies estimate a $10.10 minimum wage would carry about a $165 million price tag for taxpayers in Georgia, $87 million in Missouri, $71 million in Pennsylvania and nearly $70 million in Wisconsin.

The National Restaurant Association partnered with the state restaurant associations to produce the studies.

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