Business Survey: Raising Minimum Wage Means Raising Prices

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Express released new results today from a survey of businesses revealing some of the effects an increase in the minimum wage would have on their company. More than a third (37 percent) said they would increase the price of goods or services, and 30 percent said they would eliminate positions.

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While some workers will see a raise, which is good news, this survey shows that there are clear negative consequences for raising the wage to $15.

Express Employment Professionals released new results today from a survey of businesses revealing some of the effects an increase in the minimum wage would have on their company.

Respondents were asked, “What actions would you take if the minimum wage increased to $15 an hour?”

More than a third (37 percent) said they would increase the price of goods or services, and 30 percent said they would eliminate positions. On the other hand, 20 percent reported that they would increase other wages in their companies.

Of those surveyed, 18 percent pay the current minimum wage for some positions, while 82 percent do not.

“A $15 minimum wage has certainly become a political hot topic. There’s no doubt it makes for a good talking point, but the real question is whether it makes good economic sense,” said Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City. “While some workers will see a raise, which is good news, this survey shows that there are clear negative consequences for raising the wage to $15.

“Policymakers should always keep in mind the unintended consequences of their actions. Our goal should always be getting people back to work—and creating a healthy, thriving economy that creates rising wages across the board.”

The survey of 390 businesses in the United States and Canada that are current and former clients of Express Employment Professionals was conducted in the first quarter of 2016.

If you would like to arrange for an interview with Bob Funk to discuss this topic, please contact Sherry Kast at (405) 717-5966.

About Robert A. Funk
Robert A. “Bob” Funk is chairman and chief executive officer of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has more than 760 franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than 6 million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.

About Express Employment Professionals
Express Employment Professionals puts people to work. It generated $3.02 billion in sales and employed a record 500,002 people in 2015. Its long-term goal is to put a million people to work annually.

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Sherry Kast
@ExpressPros
since: 08/2008
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