The New York City Council is considering a bill to raise the minimum wage significantly. It calls for an incremental increase to raise the minimum wage from $17 an hour to $30 an hour by 2030.
The bill has strong public support as the city’s residents face widespread unaffordability.
Rebekah Paxton, research director at the Employment Policies Institute, warned it may have more drawbacks than benefits.
“There’s overwhelming evidence drastic minimum wage hikes cause job losses,” Paxton contended. “That can also include schedule reductions, less overtime opportunities for people who want to pick up shifts, so folks could actually see working less and not being able to earn as much as they were before.”
Reports show New York City restaurants lost 10,000 jobs during the summer of 2025 compared to previous years. Some analysts attribute the trend to high wages and rising costs. Council member Sandy Nurse, the bill’s sponsor, argued the city’s minimum wage is a poverty wage, leaving more than a million workers living on $500 a week.
Research suggests larger minimum wage hikes may cause businesses to stagnate. In 2024, California increased the minimum wage for fast food jobs to $20. After the law was passed, data show it led to a loss of more than 19,000 jobs. A survey from the Economic Policy Institute found 89% of business owners said they were less likely to expand in California. Nearly all the restaurants surveyed also said they increased prices.
Paxton argued New York City should take note.
“Prices went up, so the people who were buying fast food, residents and maybe some of those workers now have to buy the food they were buying before at a higher price point,” Paxton explained. “There’s a lot of evidence to suggest minimum wages contribute to inflation as well.”
Other wage hikes are not showing better results. Ahead of the 2028 Olympics, Los Angeles implemented a $30 minimum wage for hotel workers but a new report showed hotels are now reducing staff because they can’t afford to pay the new wage.
Edwin is a reporter and producer in North Tonawanda, New York. He’s previously reported for the Niagara Gazette and the Ithaca Times. Edwin got an early start in radio interning for WBFO-88.7FM, NPR’s Buffalo affiliate. In 2018, he graduated from SUNY Buffalo State College with a B.A. in Journalism, and in 2022, graduated from Syracuse University with an M.S. in Communications.