Minneapolis Fed Study Ties $15 Wage Hikes to 9,222 Lost Twin Cities Jobs

2 articles · Updated · Fox News · May 13

A Minneapolis Fed working paper estimated Minneapolis lost 5,425 jobs and St. Paul 3,797 between 2017 and 2021 after phased minimum-wage increases, while some remaining workers also saw hours cut.
The study said the damage was concentrated in labor-intensive sectors, especially restaurants, retail and health, and persisted even after accounting for COVID-19 disruptions and unrest following George Floyd's killing.
Restaurant employment was hit hardest: full-service restaurant jobs fell nearly 36% in Minneapolis and nearly 20% in St. Paul between 2018 and 2023, according to Fed data cited in the report.
The findings land as progressive Democrats keep pressing to lift the federal minimum above $7.25, with some lawmakers arguing even $15 is now too low and proposals reaching $20 to $30.

With experts divided, how can cities raise wages without risking massive job losses for their most vulnerable workers?

Do rising minimum wages lift workers from poverty, or simply accelerate a future where robots take their jobs?