This story was reported and written by Radio IQ.
As the clock strikes midnight on New Year’s Eve, the minimum wage in Virginia will increase from $12 an hour to $12.41 an hour. That's because of a bill passed in 2020 and signed by Governor Ralph Northam that adjusts the minimum wage for inflation.
"I think generally it has very little impact on areas that really don't need the raise, like up here in Northern Virginia," says Derrick Max, president of the conservative-leaning Thomas Jefferson Institute. "But you really hurt the poorer, less skilled workforces in Southwest Virginia."
But the argument that raising the minimum wage increases the unemployment rate is an oversimplification says Jennifer Victor at George Mason University.
"In reality, the story is a lot more mixed than that," Victor says. "Some employers have a greater capacity to absorb increases in wage costs than others, particularly very large employers. And many employers appreciate the capacity to be able to attract employees in regions where maybe there's a tighter labor market."
Earlier this year, Governor Glenn Youngkin vetoed a bill that would’ve increased the minimum wage to $15 an hour by 2026.
