Washington State, which has the highest minimum wage rate in the nation, will get another increase Jan. 1 from $8.07 to $8.55 per hour.
The 5.9 percent increase is the state’s largest yet, and puts Washington’s rate a full $2 higher than the current federal minimum wage. The federal rate will increase to $7.25 per hour July 24.
The 48-cent increase is in place because of Initiative 688, which requires that the state’s minimum wage be adjusted annually based on changes in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers. The law does not allow decreases in minimum wage if the index falls, said Elaine Fischer, a spokeswoman for the state’s Department of Labor and Industries.
Since Washington voters approved that initiative in 1998, at least seven other states have connected their minimum wage rates to inflation, she said.
“It’s something that the citizens of the state have made a priority, to have a minimum wage that reflects changes in the cost of living over time,” Fisher said. “The increase was the highest we’ve ever seen.”
Washington’s rate is followed by Oregon, California and Massachusetts.
Workers age 14 or 15 may still be paid $7.27, or 85 percent of the adult minimum wage.
In 2007, minimum wage jobs made up 2.5 percent of Washington’s employment – the equivalent of 56,947 full-time jobs.
Meanwhile, jobless rates increased in November in Clark and Cowlitz counties – with Clark up from 7.5 percent to 8.2 percent and Cowlitz up from 8.4 percent to 9.5 percent. Clark County’s biggest job losses for the month were in construction and manufacturing, with seasonal trends bringing them down 400 jobs and 100 jobs, respectively, according to the latest Labor Market and Economic Analysis report published by Scott Bailey, regional economist for the state Employment Security Department.
Trade, transportation and utilities saw gains of 200 jobs in Clark County. Gaining 100 jobs each were financial activities, education and health services, food services and government.
The state’s overall unemployment rate inched up from 6.3 percent to 6.4 percent in November, according to ESD.
The state’s residential specialty-trade construction industry lost 3,300 jobs in November, followed by the 1,800 lost by clothing and accessory stores, the 1,600 drop in administrative and support services and the 1,200 shed in general merchandise stores.
Health services and social assistance had the most job growth in the state with 700 new jobs. Gaining 200 new jobs each were professional, scientific and technical services, electronic markets, agents and brokers and transportation equipment manufacturing.
In late November, federal legislation approved an extension on emergency unemployment benefits from 20 weeks to 33 weeks.
SHOP TALK
How will the increase in minimum wage affect your business?
“For me it’s par for the course…Keeping above minimum wage is a struggle because it takes profits down considerably. But those workers need that money…When minimum wage creeps closer and closer to what (they’re) making, it makes workers want to look elsewhere.”
—Carla Coberly, owner of A Clean Sweep in Camas
“We aren’t able to devote a ton of payroll to training like some larger companies so I typically hire slightly more experienced people in the first place. (Now) I’m rarely starting anybody below $8.50…I’m not going to be in a position where I can automatically say (to experienced workers) that I can pay a certain amount above minimum wage. It gets harder to be competitive in that regard.”
—Francine Shaputis, store manager of Romy at Westfield Vancouver Mall
“When somebody says they have to pay minimum wage (at a large corporation), its no big deal. For a small business owner to meet that standard is a whole different story. I don’t understand why they act as if a large corporation and a small business are in the same situation…If somebody chooses to work for me and I can only give them $5.25 an hour, they (might) choose to work for less because they love the atmosphere and they understand that they are part of our (start-up) team.”
—Marcell Gareis, co-owner of Marcell’s coffee shop in Vancouver
Charity Thompson can be reached at cthompson@vbjusa.com.
