What are the lowest minimum wage rate states and what is their respective unemployment rates?
A high minimum wage can contribute to a higher unemployment rate in several ways. But things are relative and the rate likely should be raised to keep pace with all other higher wages, to be fair. If the minimum wage is increased without increases in productivity, all goods and services will likely cost more, even for the person earning minimum wage. When the minimum wage is raised all other wages inch up to maintain a differential. When the costs of domestic goods and services rise, we tend to import cheaper goods from abroad and out-source jobs to foreign countries, losing jobs at home. Minimum wage jobs are often the entry level in many companies during training when productivity is low. The real question should be how good are the opportunities to advance to higher wages? Often a minimum wage job without opportunity to advance is nonetheless a first job where job skills and good references may be obtained. A low minimum wage may encourage full employment at which point companies ma
