California’s planned increase of its minimum wage to $10 an hour will cost the state 190,000 jobs, a new report from the conservative think tank American Action Forum estimates.
If a $10 minimum wage were implemented in all 50 states, according to AAF’s analysis, 2.3 million new jobs would be lost across the country.
California Gov. Jerry Brown signed a law raising the state’s minimum wage to $9 by next year and and to $10 by 2016. That would be the highest rate in the country. The current federal minimum wage is $7.25.
President Obama identified raising the minimum wage as a goal in his State of the Union Address. Obama called for raising the rate to $9 and indexing it for inflation. Some Congressional Democrats have proposed setting it at $10.10.