It seems that Americans literally have a merrier 'New Year' with its implementation of minimum wage increase in their nation's 14 states this January.
The $7.25 an hour federal minimum wage has been around in the United States for more than six years. According to Yahoo! News, this 2016, several cities including 14 states in America are moving forward. They change their current minimum wage and are set to take effect on Friday.
South Dakota has increased to $8.55 per hour while Arkansas has the lowest increase with only $0.50 to $1 per hour. On the other hand, California and Massachusetts are the states having the highest increase amounting to $10 from the usual $7.25, according to the National Conference of State Legislatures.
The increase in the hourly rate rises from $8.50 per hour to $9. Other cities get even high with their increase such as Seattle with a sliding $10.50 to $13 per hour on Jan. 1.
The increase is due to a series of protest from across the country. Late last year, a campaign was endorsed wherein there were thousands of protesters from 270 different states. They marched in favor of the $15 hourly minimum wage increase. They also protested to support the workers in fast food companies about their rights. Bureau of Statistics said that fast food workers make up the biggest group of workers that earns only a minimum wage.
A higher minimum wage according to backers helps fight against poverty but this was opposed by their opponent because this according to them, might have an impact on employment status as well as the company's profits.
Princeton University professor, Alan Krueger, said that this change would not cause a noticeable effect on the state employment in the U.S. because the increase of up to $12 per hour was phased in five years or more. He added that some companies may cut jobs, some may reduce turnover, increasing employment states yet lowering profits.
