Minimum wage hike has an adverse effect on jobs for young workers

Gov. Larry Hogan and Maryland's political leadership face no simple tasks in the months ahead. Along with a $1.2 billion budget shortfall, they will be forced to confront the fallout of big-government policies enacted by previous administrations. One such policy is the new $8.00 per hour minimum wage that went into effect Jan. 1. Maryland's minimum wage will again increase another 25 cents in July and, through a series of hikes, will reach $10.10 by July 1, 2018.

The minimum wage increase impacts business owners and jeopardizes those they employ. As Maryland's business owners scramble to cover higher labor costs, they may be forced to reduce employee hours, benefits or training, or to slow hiring and expansion. These reductions would exacerbate Maryland's already-troubling youth unemployment rate — currently 13.4 percent — by robbing young, inexperienced individuals of job prospects and, more importantly, crucial opportunities to earn the work experience necessary to build a career.

An increased minimum wage will remove the first rungs of the career ladder in the American dream. The negative effects on employment are likely to be more profound in the long run, as employers shift to labor-saving methods of production when labor costs rise. ATMs have replaced many bank tellers, cashiers have been swapped for self-serve checkouts and gas jockeys have been eliminated in jurisdictions where they are not legally mandated.

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