Boston is a high-cost city, and the cost of living is rising. This has made it difficult for some workers to make ends meet, even if they are working full-time. In an effort to help low-wage workers, the city of Boston has raised the minimum wage.
The minimum wage in Boston is currently $15.00 per hour. This is higher than the minimum wage in Massachusetts, which is $14.25 per hour. The minimum wage in Boston is also higher than the federal minimum wage, which is $7.25 per hour.
The city of Boston is committed to raising the minimum wage to $18.00 per hour by 2023. This will help to ensure that all workers in Boston can earn a living wage.
Positive Impacts
Increased spending: When low-wage workers earn more money, they spend more money. This can boost the economy by increasing demand for goods and services.
Reduced poverty: The minimum wage can help to reduce poverty by lifting low-wage workers out of poverty.
Increased economic security: The minimum wage can help to increase economic security for low-wage workers by giving them a safety net in case of unexpected expenses.
Negative Impacts
Job losses: Some businesses may lay off workers in response to an increase in the minimum wage. This is because the higher wage will increase their costs, which may make it difficult for them to stay in business.
Reduced hours: Some businesses may reduce the hours of their workers in response to an increase in the minimum wage. This is because they may not be able to afford to pay their workers the higher wage for the same number of hours.
Increased prices: Some businesses may raise their prices in response to an increase in the minimum wage. This is because they may need to pass on the higher costs to their customers.
Overall Impact
The overall impact of the minimum wage on the Boston economy is mixed. There are both positive and negative impacts. The positive impacts include increased spending, reduced poverty, and increased economic security. The negative impacts include job losses, reduced hours, and increased prices.
The net impact of the minimum wage on the Boston economy is difficult to predict. It will depend on a number of factors, including the size of the increase in the minimum wage, the response of businesses, and the overall state of the economy.
The average wage in Boston is also high. The median household income in Boston is $100,000 per year. This means that half of all households in Boston earn more than $100,000 per year, and half earn less.
The high average wage in Boston is due to the fact that the city is home to a number of high-paying jobs in the tech, finance, and healthcare sectors. However, there are also a number of low-paying jobs in the city, such as retail and food service.
The high cost of living in Boston can make it difficult for low-wage workers to make ends meet. However, the city's commitment to raising the minimum wage is a step in the right direction.
A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.
