PORTLAND, Ore. (KOIN) – As costs increase across the country, Oregon’s minimum wage will also increase this Friday. KOIN 6 News talked to an economics professor to find that out how this will impact workers, inflation, and the state’s economy.
According to the Oregon Bureau of Labor and Industries, the minimum wage will now be $14.75 an hour in Portland. It goes up to $13.50 an hour in less populated counties outside of the metro area and $12.50 in more rural counties.
Labor Commissioner Val Hoyle said in a statement “Oregon’s minimum wage increase is more important than ever this year, as people work to stay afloat with increasing national costs.”
KOIN 6 News talked to a professor of economics at the University of Oregon who says the wage increase is still not enough to match the increase in prices.
Professor Tim Duy explained, “it’s not quite what it would take to keep up with inflation.”
However, he said, many employers are already offering more than minimum wage.
“In a lot of localities, you just can’t hire at the minimum wage. You have to hire above the minimum. So…that means raising the minimum wage might have fairly limited effects,” Duy said.
When asked how this increase will impact inflation, Duy said it depends how widespread wage indexation is. The professor also noted he does not think the country will face a recession in the immediate future, but that could change down the line.