An increased minimum wage is seen as harmful to businesses and the unemployed, but beneficial to employees who already have jobs, according to a study released today by Express Employment Professionals.
The study, conducted by the staffing company last month, surveyed 837 business owners, HR professionals and employees about their views on the effects of raising the minimum wage.
Fifty-nine percent of respondents said a minimum wage increase would be bad for U.S. businesses, and 70 percent said it would have a negative impact on employers. Similarly, 60 percent said it would negatively impact the unemployed.
On the flip side, 70 percent of respondents said raising the minimum wage would have a positive impact on employees.
Of business owners surveyed, more than one-third said a minimum wage hike would cause them to reduce hiring in the future, and 17 percent said it would cause them to conduct layoffs.
“A minimum wage increase cuts both ways, as this survey reveals,” said Bob Funk, CEO of Express and a former chairman of the Federal Reserve Bank of Kansas City. “On the one hand, it could raise wages for some workers, but on the other hand, it can mean layoffs. Because it also reduces the ability to hire, raising the minimum wage could mean zero wages for some.”