As the first full work week of 2015 begins, nearly 300,000 of the lowest-wage workers are earning a little bit more than they did last year.
On Jan. 1, the minimum wage increased 15 cents to $8.10 per hour, the result of a voter-approved measure that provides annual cost of living wage adjustments.
Amy Hanauer, executive director with Policy Matters Ohio, says while the boost will help Ohio workers, 19 states have higher minimum wages.
"The District of Columbia has a minimum wage at $10.50 an hour," she says. "Places like Washington and Oregon and Connecticut, Vermont, California, Massachusetts all have minimum wages above $9 an hour. So we are a little bit behind some of the most forward-thinking peers."
The national minimum wage is $7.25 per hour. Hanauer says Ohio's increase will generate a $36 million increase in economic growth because of consumer spending.
Hanauer says despite the increase, many low-income workers in Ohio struggle to get by. She says a higher minimum wage of $10.10 per hour would be much better, and create a significant boost to the economy.
"There are certain businesses that would have to pay their workers more and if they really operate on very low margins that might become a little harder for them," she says. "But for the vast majority of people trying to produce things and sell things in this economy, it will be a positive thing that people have more money in their pockets."
Hanauer adds, nine of the 12 most common occupations in Ohio pay less than $10 an hour.
