As we made our way to New Year's Eve, some workers across New York State woke up to a significant raise. As of last Wednesday, New York's minimum wage increased nearly 9.5% to $8.75, from $8 per hour. Across our country nineteen other states increased wages for their lowest income workers.
Of New York's neighboring states, only Massachusetts has a higher minimum wage--but not for long. Currently Massachusetts' minimum wage is $9 an hour. It is written in New York State's budget that on next New Year's Eve (12/31/2015) minimum wage workers will receive another raise to $9 per hour.
Throughout the state the wage increases have been a hotly debated topic. Some believe that by increasing the wages to the lowest income earners that the money will trickle back into the local economy. While others feel that small businesses will struggle due to higher labor costs. Only time will tell how this raise will affect our local and statewide communities.
One thing is certain, the New Year's Eve holiday has gotten a little bit sweeter for roughly 3% of New York State's working population.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).