The
Department of Labor announced that the minimum wage phase-in will continue for
Long Island and Westchester County starting
Dec. 31.
The
wage phase-in requires minimum wage rates to increase each year in all counties
until they reach $15 per hour.
The
Division of Budget said in a report that it found evidence of pressure for wage
raises during the pandemic-driven labor shortage.
- The low-wage sector was
the most severely impacted by the pandemic: 1 million, or 57.2 percent of
the private sector losses, were in the three industries where minimum wage
workers are most concentrated – retail trade, health care and social
assistance, leisure and hospitality. These sectors represented only 42.5
percent of private employment at the February 2020 pre-Covid peak. In just
two months, the low-wage sector experienced a combined loss of 31.0
percent of its jobs.
- Results from the Survey
of Consumer Expectations, compiled by the Federal Reserve Bank of New
York, suggest that the pandemic has caused some workers to reassess the
value of their labor. The survey asks workers the lowest wage they would
accept in their chosen line of work, called a reservation wage. Survey
results indicate the nationwide reservation wage attained a historical
peak of $71,400 in March 2021, a 15.7% increase from March 2020 and while
it dipped in July 2021, it remained elevated over a two-year period,
indicating particularly strong growth in reservation wages among less
educated and young workers.
- The Conference Board
Help Wanted Online Index is showing statewide job postings at record
highs. Total job postings for July 2021, the most recent month available,
exceeded the March 2020 pre-pandemic peak by 72.4 percent. The shortage of
low-skill/low-wage labor appears to be even more severe. July postings
specifying a high school education or vocational training exceed their
March 2020 pre-pandemic peak by 95.4 percent. Moreover, postings
specifying either a high school education or vocational training represent
29.9 percent of total postings for July 2021, just below its May 2021
historic high of 31.6 percent.
Large and small employers in New York City reached minimum wages of $15 in 2018 and 2019 through the phase-in.
The remainder of the state will increase to $13.20 at the end of the year and will continue to increase every year until it reaches $15.
For
the full schedule of the minimum wage rate,
click here.The Department of Labor has answers to frequently asked questions
here.