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Lyrl@lemmy.dbzer0.com ⁨1⁩ ⁨week⁩ ago

A few percent of job seekers as structural unemployment supports a healthy economy where people change jobs and careers to match changes in labor needs.

That doesn’t mean an increase in minimum wage increases unemployment. There are hundreds of academic studies investigating that question, and it seems the increased economic activity of low-income people having more money generates enough new jobs to at least balance whatever job cuts happen due to the higher labor costs (low-income people tend to spend all their money, so they are more effective agents of short term economic stimulus than higher-income households that tend to save some of it).

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