We’ve heard it all before – the tired myths about the effects of the minimum wage on the economy.
But not only do national studies consistently show little impact on jobs, we only have to look at previous wage increases in Missouri to see the truth. Following the last minimum wage increase passed in 2018, Missouri’s economy outpaced our neighbors (who didn’t have minimum wage increases) and outpaced the nation.
During the phase-in of Missouri’s last minimum wage increase, Missouri’s unemployment rate went down at a rate higher than the national average AND higher than each of Missouri’s neighbors that did not increase the minimum wage. This is consistent with prior research that suggests increases in the minimum wage increase employment, in part by reducing turnover among employees.
We’ve also all heard the line that only teenagers make the minimum wage, or alternatively that raising the minimum wage will shrink opportunities for young adults. But, again, Missouri’s experience with previous increases in the minimum wage clarifies the facts. Teenage and young adult employment remained strong after Missouri implemented the last minimum wage increase. Before the minimum wage increase, around 57% of young adults were employed. These workers accounted for approximately 12% of the total labor force. Today these numbers remain virtually unchanged. Unemployment among workers aged 16 to 24 went down.
It’s also important to know that teenagers are actually a very small portion of the Missourians who will benefit from the Prop A Minimum Wage increase.
- The vast majority of those who will be impacted by this wage increase are adults over age 20 (86%) who currently work more than 20 hours per week (87%).
- Moreover, the number of workers age 55 and over who would benefit is higher than the number of teenagers who would see increased wages.
Quite simply, Missouri workers are the engines of our economies.
When they earn a decent wage and can care for their health and their families’ health without risking their jobs or paychecks, then workers, their families, and our economy is better off. By ensuring workers can earn paid sick leave and increasing the state’s minimum wage, Proposition A will help Missourians build a more prosperous future.
Learn more about the benefits of Proposition A:
Raising Missouri’s Minimum Wage Is Good for Workers and the Economy
$15 Minimum Wage and Access to Paid Earned Sick Leave Good for Missouri Kids and Families
Increased Minimum Wage & Access to Earned Sick Leave is Good for Workers and Good for Business
Workers Across Missouri Would Benefit from Increased Minimum Wage
