The minimum wage in NC is currently $7.25 an hour. North Carolina raised its minimum wage based on the Fair Minimum Wage Act (FMWA) of 2007, which gradually raised the federal minimum wage from $5.15 to $7.25 per hour. FMWA was part of new Democratic majority’s agenda in the US House of Representatives, and was signed into law on May 27, 2007. Dr. Cordato discussed the effects of the minimum wage back in 2006 when State Treasurer Richard Moore wanted to raise the minimum wage to $6.15, “one more dollar” than the federal minimum wage.
The bill passed into legislation once President Bush’s suggestions to include small business tax credits were added. These tax credits were a good idea because raising the minimum wage decreases the employer demand for labor, resulting in the quantity of unskilled workers employed to fall.
Predictably, after this 40% increase in the minimum wage, unemployment locked into a downward spiral. According to the U.S. Bureau of Labor Statistics, current North Carolina unemployment is 9.5% while the national average is 8.7%. Though not all of this can be attributed to an increase in the minimum wage, at least some of it can. In May 2007, national unemployment was 4.4%.
Last week, North Carolina Congresswoman Renee Ellmers debated her opinion against President Barack Obama about what is the best way to go about creating jobs. Creating jobs is not a quick fix to unemployment; the fix is allowing an individual to be able to work and earn an amount that their abilities and situation would permit him to earn. If an individual’s work is not valued at, or above, $7.25 per hour, how are they ever going to be able to find a job?