Ohio minimum wage hike will boost consumer spending by $36 million

Raise will help 277,000 Ohio minimum wage workers, as increases kick in across the country

Ohio hike tied to inflation, but higher wage still needed

NOTE: This release was updated 12/29/2014 to reflect recalculated numbers. The initial release 12/23/2014 included incorrect figures provided by the Economic Policy Institute pertaining to the number of workers affected and the economic impact.

Ohio’s minimum wage will increase by 15 cents to $8.10 per hour on January 1, giving a raise to an estimated 277,000 low-wage workers here. The minimum wage for tipped workers in Ohio will rise by 7 cents to $4.05 per hour. The minimum wage raise will spark a $36.3 million increase in economic growth, because of the increased consumer spending, according to an analysis of Census data by the nonpartisan Economic Policy Institute. The increase is the result of a state constitutional amendment approved in 2006 that provides annual rate adjustments to keep pace with the rising cost of living.

“Ohio voters did a terrific thing for workers and the economy when we passed a higher minimum wage and indexed it to inflation in 2006,” said Amy Hanauer, Executive Director of Policy Matters Ohio, a non-partisan organization that studies Ohio’s economy. “In fact, as cities and states around the country raise their wages above both the national and the Ohio level, it’s time for Ohio to boost its wage above the $8.10 level.”

Twenty other states will also raise their minimum wage by January 1