• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Trending:
  • Kashmir
  • Elections
Saturday, June 6, 2026

Daily Times

Your right to know

  • HOME
  • Latest
  • Iran-Israel war
  • Gilgit Baltistan Election
  • Pakistan
    • Balochistan
    • Gilgit Baltistan
    • Khyber Pakhtunkhwa
    • Punjab
    • Sindh
  • World
  • Editorials & Opinions
    • Editorials
    • Op-Eds
    • Commentary / Insight
    • Perspectives
    • Cartoons
    • Letters to the Editor
    • Featured
    • Blogs
      • Pakistan
      • World
      • Lifestyle
      • Culture
      • Sports
  • Business
  • Sports
  • E-PAPER
    • Lahore
    • Islamabad
    • Karachi

By Nicole Gelinas

A $15 minimum wage will crush the retail industry

Published on: August 7, 2016 7:00 PM

new york: Last week, Hillary Clinton’s Democratic Party officially adopted a $15 minimum wage as party of the 2016 platform. If Clinton succeeds in getting this past Congress, it would disproportionately affect retail trade at a time when retail giants and small-business owners alike already have enough reasons to slash costs. The federal minimum wage is $7.25. Most retail workers make above that – but they don’t make anywhere close to $15. Of America’s nearly 16 million retail workers, the biggest group – 4.6 million – are salespeople. Their average wage is $10.47 an hour. After that, the country has another 3.4 million cashiers, and their average wage is $9.28 an hour. Only a quarter of salespeople earn more than $14 – and only 10 percent earn more than $19. The figures are worse for cashiers. Besides salespeople and cashiers, retail shops hire stockpickers and the like. None, on average, makes close to $15. Only the 1.2 million supervisors in the industry make an average $18.50. Increasing the minimum wage to $15, then, would transform the retail industry in a way we haven’t seen since after World War II, when middle-class America made the nation into an economy that depends on consumption, not production. This is an industry that has always relied on cheap, unskilled, transient labor. If cheap labor doesn’t exist anymore – pretty much the definition of the government hiking your front-line wage costs by half in one move – the industry will have to change. Again. The retail industry was among the hardest hit after 2008 – because Americans, with less or no equity in their houses, stopped spending. Today, America has 5.3 percent more private-sector workers than it did before the crash. The retail industry has gained only 2.8 percent more workers. People have also turned to the Internet. They now do nearly 8 percent of their shopping online – more than double the figure in 2008. And retail-store managers and owners are stuck with high rent costs, theft costs, tax costs and other bills that come with having a storefront even as they compete against Amazon. It’s hard to overstate the stress a $15 wage would add to this pressure. Remember, if you’re paying a supervisor $18, you can’t hike the wages you pay your lower-level staff from $10 to $15, and then expect your supervisors not to demand a big hike, too. Predicting things is always dangerous, but one can predict this with near certainty: The result of impossible labor costs will be more automation. An evolution from human to automated work in retail might happen over time, anyway. But vastly higher wages for the majority of the industry’s workers would speed it up. What’s needed here is a truly small-c conservative approach. That is: hike the minimum wage by $1 or so, and see what happens for a few years. If nothing bad happens, try it again. In fact, that was Hillary’s approach up until a few months ago – when pressure from Bernie Sanders forced her to be more aggressive. But it’s the very definition of radical to take an industry that’s already struggling to remain relevant to consumers – and make its decades-old business model obsolete. At last week’s convention, New York’s other two prominent Democrats – Mayor de Blasio and Gov. Cuomo – spent their time in Philly boasting about their role in taking the “Fight for $15” to the national stage. (New York state and city are raising their minimum wage, already at $9, to $15, more or less, over the next half-decade, on a complicated schedule.) Cuomo and de Blasio shouldn’t crow over the victory yet. In fact, New York City has lost 6,200 retail jobs in the past year – after years of gains, and even as the tourism industry still thrives. Those job losses may not be because the state raised its minimum wage by $1 between 2014 and 2015 – and business owners and managers can see much bigger hikes coming. But those facts certainly don’t help.

Filed Under: Business

Submit a Comment




Primary Sidebar




Latest News

Govt considers tax relief for salons, gyms in Budget 2026-27

Nick Jonas recalls bonding moment with Glen Powell after frightening flight

Russia says it downed hundreds of drones launched by Ukraine in major wave

Two killed in firing incident at PML-N rally in Gilgit-Baltistan

US says Iran launched missiles toward Kuwait and Bahrain

Pakistan

Two killed in firing incident at PML-N rally in Gilgit-Baltistan

PESCO approves one-month salary bonus for employees

Punjab braces for hotter weather as temperatures climb

Pakistan, Russia agree to boost cooperation against illegal immigration

Pakistan rejects India’s comments on Gilgit-Baltistan elections

More Posts from this Category

Business

SBP’s ‘Go Cashless’ campaign saw Rs 34bn in digital transactions on Eid

Short-term inflation down by 0.56%

Saudi-Pak Business Council shows interest in infrastructure investment

‘Govt, allies united in efforts to craft people-centric budget’

Rupee records gain against US dollar

More Posts from this Category

World

Russia says it downed hundreds of drones launched by Ukraine in major wave

US says Iran launched missiles toward Kuwait and Bahrain

Cockroach Party founder leads protest in Delhi

More Posts from this Category




Footer

Home
Lead Stories
Latest News
Editor’s Picks

Culture
Life & Style
Featured
Videos

Editorials
OP-EDS
Commentary
Advertise

Cartoons
Letters
Blogs
Privacy Policy

Contact
Company’s Financials
Investor Information
Terms & Conditions

Facebook
Twitter
Instagram
Youtube

© 2026 Daily Times. All rights reserved.

Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.