Twin Cities’ wage hikes roasted after report exposes job-crushing fallout in Tim Walz’s backyard
A new Federal Reserve Bank of Minneapolis study is handing conservatives fresh ammunition in the minimum wage fight, with critics mocking the findings as obvious after researchers linked $15 wage...
By Fox News · Fox News
A new Federal Reserve Bank of Minneapolis study is handing conservatives fresh ammunition in the minimum wage fight, with critics mocking the findings as obvious after researchers linked $15 wage hikes to job losses and reduced hours in Minneapolis and St. Paul. "Who could have possibly seen this coming," wrote RealClearInvestigations senior writer Mark Hemingway quipped on X in response to the study. The working paper found that the phased minimum wage increases in Minneapolis and St. Paul were associated with a decline in employment, along with reduced hours for some workers that could complicate ongoing national pushes for higher wage mandates. POLITICIANS PUSH JOB-KILLING MINIMUM WAGE HIKES WHILE IGNORING THE DEVASTATING ECONOMIC REALITY The debate comes as progressive leaders continue to advocate for increasing the federal minimum wage to address rising living costs. First passed in 2017, the Minneapolis Municipal Minimum Wage Ordinance was established to increase the minimum wage in phases to eventually meet $15 per hour by July 2024. Minneapolis’ minimum wage rose to $16.37 for all employers on Jan. 1, while neighboring St. Paul’s rate rose to $16.37 for large businesses as part of phased wage increase. Researchers said the employment declines persisted even after accounting for the COVID-19 pandemic and violent riots in the wake of the killing of George Floyd in Minneapolis, two major shocks that also affected Twin Cities businesses during the study period. "We find that the increase in the minimum wage substantially decreased employment in restaurants , retail, and health, even after accounting for potential confounding effects from the pandemic and civil unrest," the report said. The Minneapolis Fed analysis found the wage hikes increased hourly pay but reduced available jobs and hours, with researchers estimating that Minneapolis lost 5,425 jobs and St. Paul lost 3,797 jobs between 2017 and 2021 because of the minimum wage increases. The restaurant secto…