Quinn’s minimum wage hike proposal would hurt inexperienced workers

Gov. Pat Quinn is pitching a plan that would effectively cut out young and inexperienced labor from the work force, and further exacerbate youth unemployment in the state. The governor revealed in a Wednesday press conference that he is seeking to raise the minimum wage from $8.25 to $10, lifting the barrier to entry for...

Gov. Pat Quinn is pitching a plan that would effectively cut out young and inexperienced labor from the work force, and further exacerbate youth unemployment in the state.

The governor revealed in a Wednesday press conference that he is seeking to raise the minimum wage from $8.25 to $10, lifting the barrier to entry for many workers who are looking for their first opportunity.

Employers look at experience and on-the-job skills when making a hire. These are developed in minimum wage jobs, which lead to higher paying jobs. If the minimum wage is raised, many entry-level opportunities would disappear. In addition, the most vulnerable young workers at the current wage level would be the first ones let go, as the cost to employ them would soar 21 percent.

The current minimum wage is already harming Illinoisans seeking work. Illinois has the fourth-highest minimum wage in the country, along with the fourth-worst unemployment nationally. Unemployment among youths in Illinois, defined as workers age 16-24 who seek work, is at crisis levels. Through 2012, 18.5 percent of workers age 16-24 are unemployed, including 27.1 percent of workers 16-19. Minority unemployment rates are even worse:

–        29.0 percent of blacks and 31.5 percent of Latinos age 16-19 are unemployed.

–        25.9 percent of blacks and 11.2 percent of Latinos age 20-24 are unemployed.

Current policies are not serving young workers and minorities. In fact, after being forced through a failed education system, the minimum wage law only adds to the burden by creating a barrier between young workers and the on-the-job skills they desperately need.

The state should not double down on a policy that is already hurting the future of the state’s youngest workers.  Instead of making dubious claims about boosting economic growth, Quinn should ascribe to the law its true effect: eliminating job opportunities for youths and minorities.

Illinois should lower the cost of opportunity for unskilled youths by reducing the minimum wage to the federal level.  With a lower barrier to entry, young workers will be able to earn their first wages and develop on-the-job skills.