Dozens of States and Cities in the US Raise Minimum Wage

Dozens of States and Cities in the US Raise Minimum Wage

EIU

2/3/21

The COVID-19 pandemic has further sounded alarm bells about inequality and reignited moves to raise the minimum wage. As of January 1, 20 states and 32 cities and counties raised their statutory minimum wage. Labor groups are advocating for a national $15 minimum, as well elimination of the $2.13 per hour minimum wage applied to restaurant waitstaff and other tipped employees. But a study by the Congressional Budget Office estimates that a $15 federal minimum wage would result in the loss of 1.3 million jobs. “We expect that the new Congress will approve a higher federal minimum wage,” say analysts at the Economist Intelligence Unit (EIU). “Owing to pressure from business groups and moderate Democrats, the increase is likely to be gradual and will not reach $15/hour for several years. It will therefore have no immediate impact on our US economic forecast.”

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