Thursday, Flordia’s minimum wage increase statute came in to effect, setting the new minimum wage at $7.21 per hour, up 6.2 per cent from the previous $6.79 per hour.

The effect of an increasing minimum wage is often a focus from businesses to avoid using the cheapest available human labour, and begin looking for capital investments and non-labour oriented decisions. A move towards “working smarter,” may cost the state thousands of jobs.

The minimum wage is slated to increase again in July, when the Federal minimum wage rate is increased to $7.25, under the new President-elect’s administration.

Florida’s wage increase is done annually, under an amendment to the state constitution, insisting that minimum wage be linked to the Consumer Price Index, an oft-cited metric of inflation.

“Our own study showed after the last increase in the minimum wage there was no negative impact,” Professor Bruce Nissen said in the Herald-Tribune, in response to comments regarding the negative impact on an already shaky recession business climate.

In the last five years, Florida’s minimum wage has seen a near 40 per cent increase, an increase which effects small businesses dependent on entry-level employees more than others.

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