If you have labor that is inexperienced and unskilled and you pay them the minimum wage and the cost per hour goes up [if they raise the minimum wage], then depending on your cost structure, you will try to reduce the number of hours to keep your total labor cost within some boundaries. Not everybody can increase their prices to compensate for increased labor cost.
Unless, you have some kind of productivity enhancements. In that case, you might be able to increase your total sales revenue and volume of product and the increased volume will result in increased revenue which will offset the increased labor cost.
When a company has people getting the minimum wage, and if the minimum wage is increased, then, in general, all of the other wages will also be increased on a comparable basis.
On the other hand, some companies may pay more than the minimum wage for entry level positions. If they do, it may be because they value certain traits such as reliability or adaptability. People working there may realize they are getting more and will perform better because they don’t want to work at a place that pays less.
You need to look at each company. Everybody has a different cost structure.
Meanwhile, the individuals can improve their own situation by getting better educated in fields that pay more. You may start out flipping burgers, but if you go to school and learn how to program computers, then you may be able to upgrade yourself and command a higher wage. Like everything else, it depends. If you study a programming language that has become obsolete, then you may not find any jobs in that field. If you have a hobby of inventing computer games, then you may easily turn the hobby into a well-paying job.
You don’t HAVE to go to school, but it’s a really good idea … IMHO,
I know a fellow who LOVES retail sales. He says he started working when he was eight years old. LOVES dealing. I guess he has a head for math so he knows what his costs and his expenses are. But has done well for decades.
So, you can start your own business. There was one fellow who did well, but he couldn’t rent a car because he was too young. He had to hire people to drive him around; for a while, he hired his mom to drive him around, but she got tired of it.
I know a couple of kids who started their own computer businesses. They have done extremely well.
You need to be flexible.
Each situation is different.
But any cost that goes up is a potential danger to a company’s cost structure. It could be the cost of electricity or rent or delivery cost or labor cost.