According to a new study released on Tuesday, a Maryland County could lose an estimated 47,000 jobs by 2022 if the minimum wage is raised to $15.
The Washington Post reports that the study, which was commissioned by Montgomery County Executive Isiah Leggett (D), the majority of jobs lost would be low-wage positions.
Leggett vetoed a minimum wage increase in January and decided to move forward with the study, claiming that a minimum wage increase would have a heavy negative impact on the economy in Montgomery County.
Philadelphia-based consulting group PFM carried out the study and found that a minimum wage hike to $15 would result in a $396.5 million loss of income in Montgomery County by 2022.
This would be due to businesses deciding to lay off employees, stopping plans to hire new workers, opening new locations, removing benefits and cutting hours for existing employees.
“We can’t minimize some of the impacts outlined here,” Leggett said while responding to the results of the study. “Even if it’s not 47,000 jobs lost, even if it’s half that, those are some startling numbers. You can’t discount it all.”
Marc Elrich, a county council member, remains skeptical of the study’s results.
A week before the study was due, Elrich proposed a bill that would raise the minimum wage in Montgomery County to $15 by 2022.
According to Elrich, the study is “nonsense.” He claims it is impossible to predict how an increase in minimum wage would impact the economy in the future. He also claimed the study was biased, as employers would be more likely to respond in a negative manner.
Breitbart reports the study was conducted between the months of April and June by using electronic surveys, phone, and in-person interviews with a range of people that included businesses owners, nonprofit owners, and community leaders.
This is not the only survey that reveals this type of result.
Several studies on this subject have shown that a minimum wage hike would be bad for employers and employees in businesses.
An April study by a Harvard Business School found non-elite restaurants would go out of business due to minimum wage laws.
A study which was conducted in June by the University of Washington found that Seattle’s minimum wage hike has resulted in a $125 a month in employees’ salaries.