TALLAHASSEE, FL (WTXL) -- Take your pick: More money or more jobs? The debate about minimum wage increases and the effect on the number of jobs is nothing new to lawmakers, employers, or employees.
What is new are these study's findings that show an increase in wages and jobs might be able to coexist.
The nonpartisan, nonprofit research institute, Integrity Florida, released a report July 20th concluding wages increases do not cause job loss.
Instead the study found a trend that states with minimum wage increases had a higher average of job growth compared to states that did not raise wages.
The federal minimum wage is $7.25 and states can either meet this requirement or go higher.
According to the report, twenty-five states, and the District of Columbia, increased their minimum wages within the 2014-2015 year. Florida was among the 25.
Those states had an average job growth that was 2.9 percent higher than 2013 growth, as shown by the study. The states that did not raise their minimum wages had an average growth of only 2.6 percent from the 2013 rate.
Of all the U.S state averages from the report, the Sunshine State ranked the seventh highest in job growth with 5.2 percent. Over the same year, the report showed its wages increased from $7.93 to $8.05.
From the same rankings, the top two states with the highest job growth were California and Washington and they also raised their minimum wages. The only state to increase its minimum wage but decrease in job growth was West Virginia. Ben Wilcox, co-author of the study, says that West Virginia is an outlier due to other factors apart from this study.
But it's not just an increase in wages but also how much is the increase. Of the places that increased their minimum wage, those which had a increase of a $1 or more averaged a job growth of 3.1 percent.
Even on the local level, the trend is still the same. This study also researched job growth of select cities and counties across the country. After analyzing five local governments with wage increases, all had growth in employment.
Here are the conclusions from the report:
"Our analysis of existing research found no clear evidence to support the assertion that an increase in the minimum wage causes employers to cut jobs. Our examination of employment statistics in states found no evidence of employment loss in states that have increased the minimum wage and more evidence that suggests employment increases faster when there is an increase in the minimum wage. Employment statistics in cities and counties where the minimum wage has increased show no decline in employment levels, only gains. "
The bottom line: Raising the minimum wage does not cause job loss, according to the report.
So why is this?
Economists say that more pay equals more spending money. More spending money creates a higher demand for good and services. This demand then causes the need for more workers.
The report also adds that the higher wages attract applicants, which make for less turnover over of workers and, therefore, lowers costs for employers.
While the study analyzed data from 2013 through 2015, the talk about wages isn't over for Florida.
Florida currently has a proposed constitutional amendment to raise the minimum wage to $10 an hour. It will appear on the 2016 ballot if it gets enough signatures, according to Chairperson Leonard Schmiege.
