Proposed Hike of Minimum Wage

One of the key issues raised in discussions about discussing the proposed increase in the minimum wage is the potential for a loss in jobs, especially at the entry level.

In fact, Labor Secretary Bill Brock has based his entire opposition to my minimum wage legislation on an unfounded fear that requiring business to pay living wages will trigger the loss of thousands of jobs, especially for young people.

But economic factors other than the periodic increases in the minimum wage have played a much greater role in unemployment and job creation over the past half century. Business climate, interest rates, the trade deficit, seasonal influences, and competition from adult women are more critical in determining the number and kinds of entry level jobs available for young people than the wage floor set by Congress.

During the Reagan recession, from 1981 to 1984, teen-age unemployment was more than twice that of adults. The economic slump caused a loss of jobs and opportunities for younger, more inexperienced workers because businesses were forced to cut back. Experienced adults usually retain their jobs during economic downturns, which has nothing to do with minimum wages, but everything to do with corporate fiscal policies.

In the last six years the minimum wage has remained stable--even being reduced to a sub-minimum in its purchasing power--but youth unemployment has continued to hover above 18%. Business has certainly adjusted to the $3.35 per hour wage, yet has not chipped away at this intolerable high jobless level among young people.

Finally, the severe and chronic unemployment rate for minority youth, which the Reagan Administration claims would worsen under my bill, can be directly attributed to the lack of job opportunities in inner cities, high dropout rates and discrimination.

A $4.65 an hour minimum wage versus a $3.35 hourly wage is not going to stem the rising dropout rates or cure job discrimination. It will, however, help the young single mother raising a family climb out of poverty.

For young people, we need greater federal emphasis on education and job training--both areas that this Administration has neglected. Over the last six years, federal support for job training programs has been cut by more than 30% and funding for vocational and adult education has been reduced by 25% in real dollars.

AUGUSTUS F. HAWKINS

Washington

Rep. Hawkins (D-Los Angeles) is chairman of the House Committee on Education and Labor.