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Albany, NY - 123,000 New Yorkers to Get Pay Raise Tomorrow |
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About 63,000 state residents will get a 10-cent raise when the state's $7.15-an-hour minimum wage is superseded by the new federal minimum, according to an analysis by the Economic Policy Institute, a liberal-leaning think tank in Washington.
An additional 60,000 who make slightly more than minimum wage are expected to get raises as well, according to Kai Filion, a researcher for the Economic Policy Institute.
"Employers often will give those who had been earning slightly above the minimum wage a raise to keep hierarchy in place, where experienced workers earn more than the entry level," he said.
Nationally, an estimated 4.5 million workers in 31 states will receive a raise.
Nineteen states and the District of Columbia aren't affected because their state minimums are already $7.25 an hour or higher.
Friday's increase in the federal minimum wage is the third and final increase contained in legislation passed by Congress two years ago.
The first step increased the federal minimum wage from $5.15 to $5.85 an hour on July 24, 2007. The second step occurred a year ago when the minimum increased to $6.55 an hour.
However, neither of those earlier changes affected New York because the state's minimum wage has been $7.15 an hour since January 2007.
The latest increase comes at a time when unemployment is on the rise, with the jobless rate in New York reaching 8.7 percent last month, a half percentage point higher than in May.
The national unemployment rate is even higher, at 9.5 percent, and is likely headed higher.
Filion said he doubts Friday's increase in the minimum wage will lead to more layoffs.
"In a recession, people are getting laid off regardless of what the minimum wage is," he said.
The good news, he said, is that low-wage workers will have more money and will spend it on consumer goods.
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Read Comments (4) — Post Yours »
1
Jul 23, 2009 at 04:56 PM Use Your Head Says:
Minimum Wage is a liberal sham. As with all liberal shams, it actually provides no benefit to those who "deserve" it and instead causes problems for everyone. When the minimum wage is increased, at best it results in a degree of controlled inflation, as the increased pay levels translate into increasing production costs and consequently increasing prices. At worst, it causes increased unemployment. Think about it - if an employer could only afford to have four workers at $6.00/hour from an economic standpoint, and then the minimum wage is jacked up to $8.00/hour, the employer can now only afford three workers and the fourth will be looking for work.
2
Jul 23, 2009 at 05:21 PM Anonymous Says:
That's very good news if you have a job! If you have been looking for months and have been going for interview after interview you would be ready to sweep the streets at this point!
3
Jul 23, 2009 at 08:15 PM AuthenticSatmar Says:
This is good news for retailers like Walmart where many minimum wage earners shop.
4
Jul 23, 2009 at 11:30 PM Charlie Hall Says:
“ Minimum Wage is a liberal sham. As with all liberal shams, it actually provides no benefit to those who "deserve" it and instead causes problems for everyone. When the minimum wage is increased, at best it results in a degree of controlled inflation, as the increased pay levels translate into increasing production costs and consequently increasing prices. At worst, it causes increased unemployment. Think about it - if an employer could only afford to have four workers at $6.00/hour from an economic standpoint, and then the minimum wage is jacked up to $8.00/hour, the employer can now only afford three workers and the fourth will be looking for work. ”
Tell the workers getting the raise that this is a sham.
And try raising a family on minimum wage.