Some of the regional data on wages and salaries for January and February have reflected mandated increases in minimum wages. In the present competitive environment this may actually not equal the low end of pay scales for some businesses who have had to up wages and benefits to attract and retain workers at all skill levels. However, for those businesses where some workers are earning minimum wage, it could also mean that businesses will have to increase compensation for those who already make something more in order to keep those with some experience.
Increases for minimum wages will probably help boost measures of wages and salaries for January and perhaps into February, but not enough to feed into any significant upward pressure for inflation.
In some instances the increase — usually related to COLA laws — are so meager as to likely be near imperceptible in a paycheck, like Florida’s 10¢ increase to $8.56 per hour, or Ohio’s 15¢ to $8.70. However, the more generous ones of around $1 per hour and up are enough that it could make a difference for household spending, especially in the populous states like California with a $1 rise to $13.00, Illinois at up $1 to 9.25, or smaller states with a bigger increase like New Mexico at up $1.50 to $9.00 or Washington at up $1.50 to $13.50.
Disclaimer: Whetstone Analysis provides commentary as a service to its subscribers. Whetstone Analysis is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated and every effort is made to ensure its accuracy, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date. Click here to read our full Disclaimer.