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income workers’ spending power, in turn helping the economy. This hike, however, kicks in during a recession when many businesses are looking to cut comers or trim payrolls.
Small businesses that will pay the increased wages may not be able to offer the same benefits or reinvest back into their business.
Companies who employ a lot of minimum wage workers will see their labor expenses rise, which may force some into layoffs, said John McClain, senior fellow at George Mason University’s Center for Regional Analysis.
liie retail, leisure, hospitality and construction industries employ the most minimum wage workers. These sectors are also suffering the most in the down economy, McClain said Companies sensitive to the
62.8%