This is good news for the recovery.
The minimum wage does not impact that many workers. The shrinking labor pool (young workers being shunted into low paying jobs and filling them up) may be more the reason why this might be happening. The minimum wage does not impact that many people - the Labor Department consistently estimates the number impacted as 5%, half of them young earners. (That might have changed in recent years, but I don't think so).
I would be interested to see if the over $50,000 start receiving better raises. Their raises were considered average, according to the article. So I'd like to see economic data over the next year and see if the labor market is shrinking there too, thus leading to higher wage growth. (The $50,000+ are also the swing voters).
First off, 5% of the workforce is a huge number to impact with higher wages to pump into the economy, even if it is the lowest paid sector of the workforce.
Second, an increase in the minimum wage creates some trickle effect for increased wages above the minimum wage. E.G. the business owner paying a buck an hour more than minimum wage to lure slightly more skilled or reliable workers away from Wal-Mart willneed to catch up somewhat when the minimum wage is raised.
