California’s increase in minimum wage may weaken economy

Employers of California raise concerns about the increase in minimum wage that it might affect the economy negatively. California Assembly has recently passed a legislation that increases minimum wage to $15 until 2022.

The majority of small business owners complain that increase in minimum wage not only weakens the economy but also causes reducing the number of employees and working hours.

Employees that are paid $11~12 an hour will  demand raise in their hourly wages and if their request is not fulfilled, they may lose motivation to work.

According to the UC Berkeley labor research center, more than 56 million workers will benefit from increase in minimum wage.

One restaurant owner said, the increase in minimum wage also will affect customers negatively from  the raise of food price.

Also, a 3 days sick pay policy burdens employers as the minimum wage increases and other business expenses are expected to increase along with the accident employee insurance.

Therefore, employers are put in place to hire experienced workers rather than inexperienced and they are left with no choice but to decrease working hours and the number of workers which could be a vicious cycle for them.

Meanwhile, others view that the increase in minimum wage for employees in poverty is a fair improvement for them because their wage has now finally been matched with the increasing inflation rate.

<Heung Ryool Park – The Korea Times Staff Reporter>