Substantially raising the federal minimum wage would cost New York state 43,489 jobs, a new study released yesterday claims.
The report by the pro-business Employment Policies Institute was a preemptive strike at coordinated, union-sponsored campaign rallies across the country today to boost the federal minimum wage.
The analysis also comes on the heels of a government report that shows that the New York City unemployment rate jumped to 10 percent last month, while the statewide rate edged up to 8.9 percent.
The EPI study evaluated the potential nationwide and state-by-state impact if the federal minimum wage were raised to $9.80 per hour from the current $7.25 — as suggested in legislation.
EPI’s report says “a wage hike of this magnitude is projected to eliminate as many as 43,489 jobs for New York’s less-skilled and less-experienced employees.”
It adds that low-profit food-service and retail companies would have to slash jobs to compensate.
James Parrott of the union-backed Fiscal Policy Institute disputed the finding. He said a hike in the minium wage would spur consumer spending and prop up a weak economy.