Its funny that this was posted. Just today my dad and I were talking about how we weren't going to be able to hire as many people and give the people who are coming back next season as many hours as this past year because of our very high labor cost (32% of our sales goes straight to labor). The reason our labor cost is so high is because we have refused to allow our employees in the store alone, not because we think THEY might steal from us, but because we are worried about their safety, especially after we close at night and they have to walk to their cars. But that is going to change next year. We can't afford to spend tens of thousands of dollars and not make any kind of profit at all, on unneeded labor just to be "safe." We've already decided that we will cut back to one employee in the slow times, and this is BEFORE another increase in the minimum wage. We did something similar the last time it happened. The affect is to reduce employment at our store which decreases efficiency, employee safety, employee moral, employment, and customer satisfaction. But it has to be done and will only get worse as the minimum wage increases. Increased prices are one of the last things we want to do, but government is essentially forcing us to do it.
Most of our employees make over minimum wage, so they wouldn't be factored into that 4.7% figure that was provided by CaptLouAlbano, but a majority of our employees make BETWEEN minimum wage and the amount that it could go up to ($9 or $10), so that 4.7% figure doesn't accurately depict the number of people who would actually be affected by the minimum wage increase. however, because $9 or $10 will be come the new standard for the bottom wages, those who are currently being paid a bit more than minimum wage will then have THEIR wages increased, too, at some point to reflect that they are worth more than those who make minimum wage. The MW actually shifts the entire wage spectrum over and everyone is affected.
Parocks, yes, minimum wage IS one of the biggest factors in determining whether an economy does good or bad, or, I should say, grows quickly or slowly. The only costs that an employer has no control or influence over are those dictated by GOVERNMENT through government granted monopolies, taxes, or minimum wages.
Regardless of how long the MW has been around or the amount of times it has been increased, every time it is increased there are shifts in the the value of the dollar and the value of a job that were not created naturally, but by government. Every time it happens it damages some aspect of the economy and creates artificial demands or surpluses that DO have a terrible impact on the economy. Like you said, we have already been experiencing these shifts for decades, and employers have already been looking for ways to eliminate as many jobs as possible which is why you don't see a huge impact every time it happens - the impact is LONG-TERM, the economy has already been adjusting for MW increases for the last 70 years. The problem is that the negative consequences happen over such a long period of time that the changes are almost invisible. My dads store has been open for 10 years and we've experienced a minimum wage increase since it opened, but we are still making changes to our labor force and store to account for it. It isn't like minimum wage went up and we instantly eliminated 5 jobs, we slowly played with the schedule, changed the hours, and altered several other things to affect our labor cost over the course of several years and we will keep doing it even after the next minimum wage increase.