Most business leaders in the United States do not support a federally-mandated $15 minimum wage, according to a recent survey.
The survey, conducted by Express Employment Professionals, also revealed only 57% of jobseekers endorse the $15 minimum wage.
Chad Warmington, executive director of the Oklahoma State Chamber of Commerce, echoed the survey’s results.
“It’s a job killer,” Warmington said. “It purports to help, but it actually hurts the people it’s intended to help. Requiring Oklahoma employers to pay a federal minimum wage will keep people from getting the jobs they seek. That wouldn’t be the market rate in Oklahoma.”
Oklahoma’s minimum wage is $7.25 an hour. The state has not raised the minimum wage since 2008. Two years ago, state Sen. George Young (D-Oklahoma City) introduced a bill to increase the rate to $10.50 an hour. However, the measure was never considered in the Senate Business, Commerce and Tourism Committee. As a result, the bill was dead for that legislative session.
Young introduced the same bill in January 2020, but, again, the measure never made it out of the committee process and was not considered by the full Senate.
According to the Express survey, 51% of business leaders said they would have to reduce their workforce numbers and 42% said there would be no impact. An additional 7% said they could increase the number of workers with an increase in the minimum wage.
“It’s typically the younger, unskilled workers who are driven out of the economy with this type of change,” Warmington said. “Businesses will make economic decisions and that means doing away with jobs and that’s not surprising at all.”
Typically, raising the minimum wage hurts small and mid-sized businesses, which is a part of the political picture President Joe Biden doesn’t understand, the chamber executive said.
“He (Biden) is a populist political leader but what he’s trying to do will hurt people at the low-end of the wage scale,” Warmington said.
Almost 75% of business leaders in the survey said they would not endorse a rise in the minimum wage to $15 an hour.
Jobseeker survey respondents provided several examples of how a minimum wage increase would impact their household. For example, one respondent said it would cause inflation in prices for other goods to compensate for the higher wages.
Other respondents’ comments were similar to Warmington’s remarks. One person said the minimum wage hike would be helpful in the short-term, but would likely cause many small businesses to close permanently.
Some respondents were supportive of the increase saying their families wouldn’t struggle as much and it would allow them to pay their rent and utilities.
The survey of 1,290 business leaders, decision makers and jobseekers was conducted in February through the Express Refresh Leadership and Job Journey blogs.