The minimum wage in the USA is a contentious issue in many states, with the most recent state to raise its minimum wage being New York. In 2013, New York Governor Andrew Cuomo signed into law an increase in the state’s minimum wage from $7.25 to $9 per hour. This increase, which took effect in 2014, has been a controversial policy decision, with many arguing that an increased minimum wage could adversely affect employment.
Since the increase, businesses throughout New York have had to rearrange their budgets and forgo hiring in order to comply with the new wage floor. As a result, job availability has become a concern for businesses, particularly in New York’s low-wage industries. Advocates of the minimum wage argue that an increase in the wage floor can help to alleviate poverty and reduce income inequality by increasing the disposable income for lower-wage earners, thereby boosting their spending power.
The minimum wage in the USA can be seen as a tool to address income inequality, and to this end, New York state has passed initiatives designed to increase the wages of low-wage workers. One of these initiatives is a “comparable worth” measure, which aims to ensure that workers in comparable jobs receive similar wages regardless of gender. Thus, female-dominated jobs, such as childcare and nursing, have seen wages increase with the precedent set by the minimum wage increase in New York.
While the minimum wage increase has seen some support, there remain those who criticize the policy. The main concern is that businesses, unable to afford the higher wages, may opt to reduce their workforce, or move operations to states where low-wage labor is more affordable. Research suggests that a modest increase in the minimum wage can have a positive impact on the economy, yet opponents of the minimum wage continue to cite fears of job losses.
Ultimately, the debate over a minimum wage increase in New York is likely to continue for some time to come. The policy has had a major impact on businesses and workers alike, and as such its success or failure will depend on the ability of businesses to adjust to the new wage floor without too much disruption. Only time will tell what effect, if any, the policy will have on employment in New York.
