CHICAGO, Sept. 25, 2014 /PRNewswire/ -- With state, local, and midterm elections just five weeks away, the minimum wage remains one of the nation's top socioeconomic and political issues. Recent national polls have shown support for minimum wage increases among voters at large, and according to a new CareerBuilder survey, many businesses are right there with them.
The survey found that a strong majority of employers (62 percent) think the minimum wage in their state should be increased, including 58 percent of company senior leaders.
The nationwide survey, which was conducted online by Harris Poll on behalf of CareerBuilder from May 13 to June 6, included a representative sample of 2,188 full-time hiring and human resource managers and 3,372 full-time workers in the private sector across industries and company sizes.
What is a fair minimum wage?
While most employers would like to see a hike in their state, only 7 percent think a minimum wage of $15 per hour or more would be fair. Nine percent don't think there should be a set minimum wage. Nearly half (48 percent) think a fair minimum wage should be set between $10 and $14 per hour.
- $7.25 per hour (current federal minimum): 8 percent
- $8.00 or $9.00 per hour: 29 percent
- $10.00 per hour: 29 percent
- $11.00-$14.00 per hour: 19 percent
- $15.00 or more per hour: 7 percent
- No set minimum wage: 9 percent
Why do employers say the minimum wage should be increased?
Among employers who want an increase in their state, improving the standard of living of workers led all business-related reasons for their support. A majority say a higher minimum wage helps the economy and helps them retain employees.
- It can improve the standard of living: 74 percent
- It can have a positive effect on employee retention: 58 percent
- It can help bolster economy: 55 percent
- It can increase consumer spending: 53 percent
- Employees may be more productive/deliver higher quality work: 48 percent
- It can afford workers the opportunity to pursue more training or education: 39 percent
Why do employers say the minimum wage shouldn't be increased?
Employers who do not support a minimum wage increase in their state cite several reasons related to negative effects it may have on their business.
- It can cause employers to hire less people: 66 percent
- It can cause issues for small businesses struggling to get by: 65 percent
- It can cause hikes in prices to offset labor costs: 62 percent
- It can mean potential layoffs: 50 percent
- It can lead to increased use of automation as a replacement for workers: 32 percent
- Wages for higher-level workers may suffer and create retention issues: 29 percent
Majority of minimum wage workers struggle to get by
A separate sample found that 79 percent of full-time, non-management-level employees have worked in a minimum wage job in the past or are currently in a minimum wage job. Of these workers, 59 percent were not or are not able to make ends meet financially.
Firms hiring minimum wage workers this year
Twenty-seven percent of employers are hiring minimum wage workers in 2014, including 51 percent of retailers and 58 percent of leisure and hospitality firms. Of those employers who currently employ minimum wage workers, 45 percent are hiring more minimum wage workers today than they did pre-recession.
Interestingly, employers currently hiring minimum wage workers are more likely to support a minimum wage increase than those who are not by an 11-point margin (70 percent vs. 59 percent).
Industry and Demographic Breakdown
|
Percentage of employers favoring | |
|
Gender | |
|
Male |
57% |
|
Female |
68% |
|
Age | |
|
18-34 |
71% |
|
35-54 |
61% |
|
55+ |
56% |
|
Industry | |
|
Health Care |
65% |
|
Retail |
68% |
|
Leisure & Hospitality |
60% |
|
Information Technology |
67% |
|
Manufacturing |
52% |
|
Financial Services |
54% |
|
Professional & Business Services |
59% |
|
Region | |
|
Northeast |
64% |
|
South |
63% |
|
Midwest |
58% |
|
West |
62% |
|
Company size (employees) | |
|
<50 |
59% |
|
51-500 |
62% |
|
501-1000 |
67% |
|
>1001 |
63% |
Survey Methodology
This survey was conducted online within the U.S. by Harris Poll on behalf of CareerBuilder among 3,372 workers and 2,188 hiring and human resource managers ages 18 and over (employed full-time, not self-employed, non-government) between May 13 and June 6, 2014 (percentages for some questions are based on a subset, based on their responses to certain questions). With pure probability samples of 3,372 and 2,188, one could say with a 95 percent probability that the overall results have sampling errors of +/- 1.69 percentage points and +/-2.10, respectively. Sampling error for data from sub-samples is higher and varies.
About CareerBuilder®
CareerBuilder is the global leader in human capital solutions, helping companies target and attract great talent. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors and 1 million jobs. CareerBuilder works with the world's top employers, providing everything from labor market intelligence to talent management software and other recruitment solutions. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit www.careerbuilder.com.
Media Contact
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SOURCE CareerBuilder
