Say Anything Blog

Here’s an interesting tid-bit from the Heritage Foundation about July’s job loss numbers.  Remember that the labor demographic most likely to make the minimum wage is teenagers, who are often working part-time jobs, summer jobs or after-school jobs.  Since 2007 we’ve seen 2 $0.70/hour hikes in the minimum wage, with a third $0.70/hour hike hitting at the end of July.  Given that 1/4 of the people who lost their jobs in July were teenagers, it’s likely that business owners were shedding entry-level, low-skill jobs before the minimum wage hike hit:

Another factor that will boost the unemployment rate in future months will be the fate of teenage workers. Teens accounted for a quarter of the decline in the labor force last month. July’s jobs report was conducted before the minimum wage took effect. Therefore, it is likely that the job market for teenagers will be further weakened by the minimum wage increase. Teenagers already have the highest unemployment rate at 23.8 percent, which is more than double the national average.

Here’s a chart showing long-term unemployment trends among low-skill workers (teenagers and workers without a high school degree) as compared to all workers and workers with a college degree:

Note that the trends shoot sharply upward staring in 2007, around the time of the first minimum wage hike and that the demographics with the fastest growing unemployment are teenagers and workers with low levels of education.

Meaning, essentially, that the minimum wage is causing unemployment among teenagers and the working poor.  Or, in other words, the people it was intended to help.

As usual, a liberal policy accomplishes the exact opposite of what was intended.