The U.S. Department of Labor reminds employers and employees that the federal minimum wage will increase to $7.25 on Friday, July 24. With this change, employees who are covered by the federal Fair Labor Standards Act (FLSA) will be entitled to pay no less than $7.25 per hour.
“This administration is committed to improving the lives of working families across the nation, and the increase in the minimum wage is another important step in the right direction,” said Secretary of Labor Hilda L. Solis.
The proportion of people ages 16 to 24 who were employed in July was 51.4 percent, the lowest July rate since records began in 1948 and 4.6 percentage points lower than in July 2008.
(Via Hot Air.)
It’s basic economics (typically taught on the second day) that price floors cause surpluses. In the labor market, a minimum wage causes unemployment. Period.
Nevertheless, politicians seem to think that the inevitable consequences of their actions can be avoided through the power of their good intentions. “Improving the lives of working families?” Perhaps, if you’re lucky enough to have work.
UPDATE: Originally I erroneously titled this post “Youth unemployment hits record high” (which lives on in the permalink). Of course, low employment and high unemployment aren’t quite the same thing. But rest assured, youth unemployment is also at a record.
Internet Scofflaw 