A new U.S. government report says a $15 minimum wage would raise wages for millions but put 1.4 Americans out of work.
The report provides fuel for both sides of the debate over raising the federal minimum wage to $15 an hour. The document, released by the nonpartisan Congressional Budget Office, reports that raising the minimum wage to $15 an hour would raise incomes for millions of Americans and lift 900,000 people out of poverty.
But by 2025, when the hourly rate reaches $15 under the congressional proposal, 1.4 million fewer Americans will be working. That’s because higher wages would increase the cost of producing goods and services, and in response, many employers would reduce their workforce or hire fewer employees, the report said.