Business Survey: Raising Minimum Wage Means Raising Prices

TORONTO, ONTARIO--(Marketwired - June 29, 2016) - Express Employment Professionals released new results today from a survey of businesses revealing some of the effects an increase in the minimum wage would have on their company.

Respondents were asked, "What actions would you take if the minimum wage increased to $15 an hour?"

More than a third (37 per cent) said they would increase the price of goods or services, and 30 per cent said they would eliminate positions. On the other hand, 20 per cent reported that they would increase other wages in their companies.

Of those surveyed, 18 per cent pay the current minimum wage for some positions, while 82 per cent do not.

"A $15 minimum wage has certainly become a political hot topic. There's no doubt it makes for a good talking point, but the real question is whether it makes good economic sense," said Bob Funk, CEO of Express. "While some workers will see a raise, which is good news, this survey shows that there are clear negative consequences for raising the wage to $15.

"Policymakers should always keep in mind the unintended consequences of their actions. Our goal should always be getting people back to work-and creating a healthy, thriving economy that creates rising wages across the board."

To view the graphic associated with this release, please visit the following link: http://media3.marketwire.com/docs/629exp_chart.jpg

The survey of 390 businesses in the United States and Canada that are current and former clients of Express Employment Professionals was conducted in the first quarter of 2016.

If you would like to arrange for an interview with Bob Funk to discuss this topic, please contact Kellie Major at (613) 222-7488.

About Robert A. Funk

Robert A. "Bob" Funk is chairman and chief executive officer of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than 6 million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.

About Express Employment Professionals and Express in Canada

Express Employment Professionals puts people to work. It generated $3.02 billion in sales and employed a record 500,002 people in 2015. Its long-term goal is to put a million people to work annually. Express launched in Canada in July 1996, with a franchise in London, Ontario, and since then, has expanded and grown across Canada significantly. There are currently 37 Express franchises in Canada-six in British Columbia, five in Alberta, two in Saskatchewan, 23 in Ontario and one in Nova Scotia.