Thirty percent of businesses said they would eliminate jobs if the minimum wage were increased to $15 an hour, according to a survey from Express Employment Professionals.
The survey asked 390 businesses in the United States and Canada what effect the increase in the minimum wage would have on their operations.
Thirty-seven percent of businesses said they would increase the price of goods, 30 percent of businesses said they would eliminate positions, and 20 percent of businesses said they would increase other wages in the company.
A majority of the businesses surveyed, 82 percent, said they do not pay the current minimum wage for some positions while 18 percent of respondents said they do.
"A $15 minimum wage has certainly become a political hot topic," said Bob Funk, CEO of Express Employment Professionals. "There’s no doubt it makes for a good talking point, but the real question is whether it makes good economic sense."
"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," said Funk, who was also a former chairman of the Federal Reserve Bank of Kansas City. "Policymakers should always keep in mind the unintended consequences of their actions."
Published under: Minimum Wage