The Proof Is in the Jobs Report: Minimum-Wage Hikes Work
By Justin Miller | Feb 02, 2018
The first jobs report of 2018 is out, and overall the news is pretty good. President Donald Trump and congressional Republicans will certainly try to take credit for the job growth and higher wages. But it would be more accurate to attribute this uptick to state labor policy—not the superiority of MAGAnomics and massive tax cuts.
The United States added 200,000 jobs in January, making this the 88th straight month of job growth, and the unemployment rate held steady at 4.1 percent (though the black unemployment rate jumped back up to 7.7 percent, just days after Trump boasted about historically low rates in his State of the Union). Meanwhile, average hourly earnings for private-sector workers increased by 0.34 percent this month, and 2.9 percent over the past year.
Wage levels have struggled to gain traction in recent years, even as the labor market has tightened. But for labor economists and workers alike, these most recent increases could be a sign that wages might finally be on the upswing, thanks to progressive state policies. In the new year, 18 states across the country—from Florida to Maine, and from Washington state to Michigan—hiked their minimum wages, bringing $5 billion in additional pay to 4.5 million workers, according to the Economic Policy Institute.
More hopeful 2.9% nominal wage growth over the year can be in part attributed to minimum wage increases across the country that took effect in January. See @janellecj for the details:https://t.co/rx2eDASSd1 pic.twitter.com/vNcjhpBm9e
— Elise Gould (@eliselgould) February 2, 2018
Despite staunch resistance from Republicans and the business lobby, worker-led movements like the Fight for 15 have had a great deal of success in increasing pressure on state and municipal lawmakers to increase minimum pay. The results are now evident in jobs reports, and it’s pretty clear that one of the best ways for the Trump administration to boost pay is to push for a higher minimum wage.
As today's jobs report shows, if Trump really wanted to goose wages, he'd raise the national minimum wage to like $10 an hour.
— Lydia DePillis (@lydiadepillis) February 2, 2018
But will Trump and congressional Republicans finally come to accept minimum-wage increases as sound economic policy? Don’t count on it. The federal minimum wage, which is still $7.25 an hour, hasn’t gone up since 2009, and its value has only withered since. The issue has become highly polarized in Congress, with Republicans doubling down on the argument that any increase to the federal minimum wage will kill jobs and hurt business, and that the only way for wages to go up is to ease taxes on corporations and let it all trickle down.
We know how that story goes.