Minimum Wage Increases Could Result in Pay Raises, Layoffs, AI Adoption

The minimum costs has accrued for workers successful 25 states this year, perchance providing immoderate workers pinch dream of a salary raise.  But while immoderate hiring managers will respond by raising wages, a caller study shows that astir employers will find different ways to negociate their budgets that whitethorn not extremity pinch workers getting a salary raise.

More than a 3rd of hiring managers would summation salary to their labor crossed nan committee if nan minimum costs increases were to return effect, including workers astatine each salary levels, according to nan results of a Express Employment Professionals-Harris Poll survey.

Most employers, however, would find different ways to navigate nan higher salary requirements, including 31% who would move to automation aliases artificial intelligence. Other hiring managers said they would return much forceful action, including 19% who would trim their workforce and 17% who would either outsource much activity aliases alteration nan number of worker hours worked. 

The study showed that hiring managers whitethorn person to woody pinch guidance from employees, arsenic 58% of occupation seekers said they would discontinue a occupation if they recovered retired entry-level workers’ salary was raised to nan aforesaid levels arsenic knowledgeable staff.

Higher Wages Could Also Affect Prices

On July 1, Oregon became nan latest state to summation its minimum wage, now group astatine $15.95 an hour.  The summation comes arsenic Federal Reserve officials intimately watch information connected wages, which tin supply penetration into ostentation trends since business owners often have to raise prices successful bid to rumor bigger paychecks. 

The higher costs requirements successful Oregon would apt impact businesses there, said Express Employment Professionals Portland franchise proprietor Sara Delafuente. 

"Some whitethorn acquisition higher operating costs, which could lead to value adjustments for their products aliases services," she said. "However, location whitethorn besides beryllium affirmative outcomes, specified arsenic accrued worker restitution and productivity and a boost successful user spending power, which could use businesses successful nan agelong run.”

The astir caller U.S. employment information showed that successful June, costs gains were apt to outpace inflation, pinch mean hourly wages expanding 3.9% complete nan aforesaid play past year, higher than nan 3.1% yearly alteration successful prices that nan Consumer Price Index (CPI) for June was apt to show.