Minimum Wage Increase To Have Minimum Effect In Utah

None by Eric Ray

(KCPW News) Yesterday's jump in the federal minimum wage is unlikely to have much of an effect in Utah, according to Pamela Atkinson of Volunteers of America. The wage increased 70-cents to $5.85 per-hour, however Atkinson says Utah's tight labor market has already caused many businesses to start workers at $7.00 or more per-hour. This means fewer people are living on minimum wage in Utah.

Nationally, there are existing concerns that businesses will raise prices in order to meet the rising cost of salaries. Atkinson, who led Governor Huntsman's Working Group on Minimum Wage last year, says rising shipping prices and other variables means costs are already up.

Minimum wage will continue to go up 70-cents per summer for the next two years, ending at $7.25 in 2009. According to the Bureau of Labor Statistics, about 1.7 million people made $5.15 or less in 2006.

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