University of Washington Seattle Minimum Wage Study: 6,700 Jobs Lost and Annual Wages Down $1,500
Results from my alma mater the University of Washington Seattle minimum wage study are out. For some it's not what some expected or anticipated. I noticed the new kiosks at the McDonald's in the Seattle-Tacoma International Airport awhile ago so the results were not shocking to me:
Minimum wages in Seattle increased from $11 in 2015 to $13 in 2016 and $15 in 2017 for large employers.
The UW study found that higher minimum wages caused a 9.4% reduction to total hours worked by low-skilled workers. Given that a full-time employee works 2,080 hours per year, that's equivalent to over 6,700 full-time equivalents who have lost their jobs.
The UW study also found that the average low-wage employee was paid $1,897 per month. The reduction in work hours would cost the average employee $179 per month while the wage increase would recoup only $54 of this loss leaving a net loss of $125 per month (6.6%). For the year this totals a $1,500 loss which is significant to a low-wage worker.
As rents and housing prices continue to escalate in King County, Snohomish County, Pierce County, we will see how low-wage workers deal with this burden which is a heavy one.
If you are a first-time home buyer and would like a list of homes for sale in your price range, contact Lana and she will send a list of homes for sale to you via email.
Contact her at 206-445-8034.
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