Businesses Warn $15 Minimum Wage Means Higher Prices, Lost Jobs
Oklahoma City, OK (PRWEB) June 14, 2017 -- Express Employment Professionals released new survey results revealing how businesses would react to a minimum wage increase to $15 per hour.
In a survey of 1,030 businesses, respondents were asked, “What action(s) would you take if minimum wage increased to $15 an hour.” They were asked to select all responses that applied.
Forty-three percent reported that they would have to increase the lower wages in their companies to comply with the minimum wage increase.
Thirty-four percent warned that the $15 minimum wage would lead to increased prices, while 32 percent said they would eliminate positions.
Fourteen percent said they would increase wages for their more highly paid employees, while 3 percent said they would close their businesses and 1 percent said they would relocate.
Similar responses were given in surveys Express conducted in the previous two quarters, though the number of respondents saying they would increase prices or eliminate positions is down from late 2016. The number of businesses that would increase lower wages is up.
In an Express white paper released in late 2016, “Great Intentions. Bad Results. The Problem with a $15 Minimum Wage in America” lays out the challenges businesses face with this mandate, what the unemployed have to say, and what the government should consider before mandating this increase.
Full results are below.
“The $15 minimum wage has sparked contentious political debates across the country,” said Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City. “As cities and states consider whether to implement it, they should be mindful of the consequences. Good intentions do not always lead to good results.
“After all, a higher wage for some can mean no wage for others. And, workers may end up having to spend the extra cash from higher wages on higher priced goods and services. It’s a delicate balancing act.”
What action(s) would you take if the minimum wage increased to $15 an hour? (Please check all that apply.)
Q2 2017 Q1 2017 Q4 2016
Increase lower wages in your company 43% 40% 38%
Increase the price of goods or services 34% 34% 40%
Eliminate positions 32% 33% 36%
Increase higher wages in your company 14% 13% 15%
Close the business 3% 2% 1%
Relocate your business 1% 2% 2%
Other 28% 25% 27%
Express Employment Professionals explored the consequences of a $15 minimum wage in depth in a 2016 white paper, “Good Intentions. Bad Results.”
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If you would like to arrange for an interview with Bob Funk to discuss this topic, please contact Sheena Karami, Director of Corporate Communications and PR, 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 770 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 Chairman of the Conference of Chairmen of the Federal Reserve and was also the Chairman of the Federal Reserve Bank of Kansas City.
About Express Employment Professionals
Express Employment Professionals puts people to work. It generated $3.05 billion in sales and employed a record 510,000 people in 2016. Its long-term goal is to put a million people to work annually. For more information, visit ExpressPros.com.
Sheena Karami, Express Employment Professionals, +1 (405) 717-5966, [email protected]
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