COLUMBUS, Ohio – A group that studies Ohio’s economy says a voter-approved raise in the minimum wage tomorrow will pump more than $30 million into the state’s economy, but favors giving workers a bigger pay hike.
Ohio’s minimum wage will increase by 15 cents to $8.10 an hour for about 277,000 workers and the minimum wage for tipped workers will go up by 7 cents to $4.05 per hour and Amy Hanauer, executive director of Policy Matters Ohio, says the group’s analysis of Census data indicates the raises will spark $36.3 million in spending on food, housing, and other necessities.
Although the institute bills is a non-partisan organization, Hanauer favors raising the minimum wage beyond $8.10.
“The boost… is meaningful and will help Ohio workers, but nineteen states will soon have minimum wages higher than that in Ohio,” she said. “It’s time for Ohio to update our policy to better reflect our economic reality. While $8.10 an hour is better than $7.95, people still can’t live on that wage.”
The increase is the result of a state constitutional amendment approved in 2006 that provides annual rate adjustments to keep pace with the rising cost of living.
A total of 23 states will be raising their minimum wages next year, the vast majority tomorrow, resulting in a boost of at least $1.6 billion, Hanauer said.