Pennsylvania Chamber of Business and Industry reacts to proposed minimum wage increase

A minimum wage increase plan would lead to increased labor costs and job loss, Pennsylvania Chamber of Business and Industry President and CEO Gene Barr said in a statement Wednesday.

The plan, which Gov. Tom Wolf proposed Wednesday, would increase Pennsylvania’s minimum wage to $12 an hour on July 1 with 50 cent increases until the minimum wage reaches $15 an hour by 2025.

The minimum wage in Pennsylvania has been $7.25 an hour since 2009.

“The proposal put forth today by the governor and several lawmakers calls for employers, in just a few months, to increase entry-level wages by more than 60 percent and for restaurants – many of whom already operate on thin profit margins – to increase by more than 235 percent and ultimately by more than 500 percent,” Barr said. “The intentions behind this proposal may be good, but it is simply disconnected from reality for many Pennsylvania employers.”

Barr cited a Congressional Budget Office report that found that increasing the minimum wage to $10.10 an hour would lead to the loss of 500,000 to 1 million jobs nationwide and noted that a state-specific study by the PA Independent Fiscal Office found similar results.

“The PA Chamber has long urged lawmakers to focus on helping individuals out of poverty through job training programs so they can fill vacancies and close the current skills gap,” Barr said. “For Pennsylvanians who are currently struggling to raise families, there are simply more effective, targeted approaches to assist these individuals, such as implementing a state Earned Income Tax Credit to supplement the federal program; and even bringing more awareness to the federal program.”