A study by two university economists estimates that New Jersey would lose nearly 32,000 jobs in six years if it increases its minimum wage to $15 an hour. Meanwhile, Politico is reporting that such an increase would hurt the state’s ability to provide various Medicaid-funded services.
In 2014, the nonpartisan Congressional Budget Office (CBO) estimated that a half million jobs would be lost nationwide should a federal $10.10 minimum wage take effect. Recently, professors David Macpherson of Trinity University and William Even of Miami University employed the same methodology and used data from the Census Bureau to see what a $15 minimum wage would do to jobs in New Jersey. Their conclusion: the state would lose 31,889 jobs by 2024.
They said roughly 721,000 employees in the state would be affected by a $15 minimum wage, almost half of whom are in retail and recreation, accommodation & food services sectors. They also concluded that these two sectors would see the bulk of the job losses.
“Proponents of a higher wage in New Jersey argue that a $15 wage will pull families out of poverty while saving taxpayers money. But mounting evidence, including a new analysis specific to New Jersey, indicates that a wage increase will not deliver these results,” the study stated.
Meanwhile, Politico’s Katie Jennings reports that fixed Medicaid rates mean that many service providers would be due substantial raises, but their employers would not have additional revenues to pay them unless the state is willing to increase spending by hundreds of millions of dollars.
The average wage for a direct support professional—the workers who assist 22,000 residents with intellectual and developmental disabilities with daily tasks—is $11.36 an hour, Jennings reported.
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As a small business owner we are very concerned about this! All of this new legislation is not only going to hurt small businesses but also the cost of living in this State is becoming unaffordable between another gas tax increase, electricity increase, among the already high property taxes I’m afraid I will need to take my business and residence outside of the state I have called home for 57 years!
Why report the opinion of university economists? Are economists the decision makers offering jobs in NJ? Why isn’t there a published poll of business leaders in the state who actually create and offer the jobs? I for one will be moving 100 plus jobs out of NJ if this disasterous idea of a $15/hour minimum wage comes to pass.
Bold concerns from an organization that supported this along with the gas tax increase. Reap what you sow.
Murphy is going to see a huge exodus from NJ as he implements his plans. I will be one of those on the way out!
I would love to know what happened to free enterprise. You open a small business to
create a company that you staff, market, direct, manage, etc. Today government is too involved telling you what you need to pay employees, to pay health benefits, offer paid leave, the list continues. In the real world potential employees will decide – if the pay level and benefits aren’t there they will seek employment elsewhere. And those “know-nothings” in Trenton think you just pass the added expense along to the consumer. These major mandates are going to kill small business in NJ. And trust me the people who think raising the minimum wage is great; ask their opinion once it goes into effect. Ask specifically how they enjoy every living expense around them going through the roof (food, services, recreation…)
Please be aware that there are some very good businesses in NJ who will be cutting staff especially for seasonal employees if another minimum wage hike is implemented. We pay a fair wage for unskilled workers but will just do without the extra help since it will be too costly. They can be replaced by technology or a different business strategy which lessens our headcount. Lower headcount means lower tax revenue for the state and the $$ put into the NJ economy.
Reconsider the impact on our small businesses since a minimum wage was never to be used as a living wage. It is supposed to be for unskilled labor until you learn a skill. This increase will severely affect the people you were trying to help since the cost of goods & services will rise.
I am still waiting for someone in charge of this minimum wage craziness to ask what do you do with the people who worked hard to get more skills and raises and are now making 15.00 per hour. Do we give them an 80 % raise also? Sounds like trouble brewing and they all are blind to it. It proves just how out of touch they are with the normal hard working people of New Jersey.
Someone needs to expose Murphy. Paid sick leave and $15 minimum wage are just the sizzle he sells to the masses while he collects more in income taxes, higher business costs on increased payroll taxes, while getting people off welfare, state subsidies which my part timers don’t collect, and unemployment lines. Please stop complaining and get the message out to expose Murphy and show the homelessness that increased after Seattle went to a $15 minimum wage. Now Seattle implemented a hourly head tax on businesses w over 20mil in sales.
Chris Cristie wasn’t as bad as the Fake News made him to be. Listen to his Good bye speech.
Mandatory paid sick leave and a $15. minimum wage will put a major hardship on small business. As a contractor it is already difficult to turn a profit in NJ. Our politicians need to cut costs at the government level rather than constantly putting the burden on small business. I am getting ready to move my business and my residence out of this money trap state!
NJ is fighting for the worst State to have a business. We can defeat California if we keep it up with all he insanity.