Important Things To Remember About Minimum Wage

By Christopher Waldeck on July 14, 2014

photo courtesy of Denis Bocquet

One of the biggest debates that has been in Washington these past few months has been regarding increasing the minimum wage.

As someone who has worked several minimum wage jobs in order to pay my way through school, I have reservations when it comes to raising the minimum wage. I don’t believe that the minimum wage should be expanded nationally, but rather at the state level.

Those in favor of the jump often point to around 13 states with a higher minimum wage than the current national one, but they fail to note that a majority of these states are more prosperous economically than other states that haven’t raised it at all or as high as the other states.

The great economic disparity among states is a reason why some areas will be burdened more than others. A good example I like to give is a 24-hour McDonald’s near a night club chain in a college town is likely to be more successful and profitable than a McDonald’s in a town with far less people than a major city.

Seattle recently voted to hike its minimum wage up to $15. Again, I have no problem with this as Seattle is a thriving city and this is being done locally with regards to what the population and cost of living need that may not be found in other areas that don’t have the same economic conditions as Seattle.

The raising of the minimum wage is a very tricky subject to discuss because of the economic factors. Minimum wage jobs are often great ways for students in high school and college to get their first taste of work experience while going to school. This experience is crucial especially when applying for internships in the near future.  

Currently, I work as a sourcer where my job is to match clients with candidates that match positions that they are hiring for. Most of the time, clients look for candidates who are currently employed and who have much experience to offer.  

For certain positions, it’s much harder for college students to secure an internship and they will need to show that they worked while going to school in order to get an internship. These jobs are very important for eliminating the structural unemployment by providing experience to people who need the work experience.

Recruiter.com says “labor is often the highest cost of any business.” By raising the cost too much, one can not only cause businesses to have to reduce hours, but can also make longer shifts and more work for limited employees that stay on.

If businesses hold on to employees, they often won’t hire as much due to high cost. This is a huge burden on inexperienced workers trying to get work experience. The hiring will often go to workers who are much more experienced or those who have higher degrees such as college students or graduates that can’t find post college level employment.

Studies have shown that many post grad college students are picking up work that is below the degree they received.

Finally, the Congressional Budget Office released an infamous report detailing that while millions could rise out of poverty, an estimated 500,000 jobs could be lost. This is also alarming because the higher cost could prevent future generations of students needing work experience by working at these jobs.

Now people are probably wondering what I would do differently besides raise the minimum wage. Personally, I believe that this is an excellent time to look towards improving one’s skills in college and addressing the skills gap in this country.

A recent article found that most employers can’t find employees or candidates that are right for the position based on a skills gap. With so many college students taking jobs that are below their employability level, it’s clear that there is a big divide when it comes to what skills are being taught and what skills are needed in the workplace.

Rather than short term solutions like raising the minimum wage, we need a long term plan to address the skills gap so people can find work that matches their education level.

Follow Uloop

Apply to Write for Uloop News

Join the Uloop News Team

Discuss This Article

Back to Top

Log In

Contact Us

Upload An Image

Please select an image to upload
Note: must be in .png, .gif or .jpg format
OR
Provide URL where image can be downloaded
Note: must be in .png, .gif or .jpg format

By clicking this button,
you agree to the terms of use

By clicking "Create Alert" I agree to the Uloop Terms of Use.

Image not available.

Add a Photo

Please select a photo to upload
Note: must be in .png, .gif or .jpg format