Despite Rising Unemployment, Illinois Proceeds with Another Minimum Wage Increase
The minimum wage in Illinois is set to increase from $14 per hour to $15 on January 1. Illinois employers are preparing for this change, which marks the last in a series of annual increases that began with a law Governor J.B. Pritzker signed in February 2019. The minimum wage for tipped workers will also increase to $9 per hour from $8.40, and the youth minimum wage for workers under 18 working fewer than 650 hours per year will increase from $12 to $13.
Governor Pritzker expressed pride in the wage increase, stating that it puts Illinois in a leading position in the Midwest for attracting high-quality workers. While he didn’t rule out a future increase, no concrete plans were shared. When the law was passed in February 2019, the state’s unemployment rate stood at 4.8%. At present, it stands at 5.3%, the third-highest in the U.S. Governor Pritzker maintains he’s working hard to create jobs and maintain a competitive environment for Illinois workers.
All of the states bordering Illinois have lower minimum wages and lower unemployment rates. Some studies found that job reductions can occur alongside minimum wage hikes, as employers can opt for automation to replace more expensive human labor. The Congressional Budget Office estimated that a $15 minimum wage would boost the wages of 17 million workers who would otherwise earn less but could also render 1.3 million others jobless. Despite some concerns about job losses, the minimum wage for 2022 stands confirmed at $15 per hour.
In related news, if you’re facing unemployment in Illinois or any other state and need to get in touch with the Employment Development Department (EDD), you can refer to eddcaller.com. This platform provides guides on how to contact EDD, get ahold of EDD customer service, and tips on the fastest way to get through to EDD. Eddcaller.com also provides key information about filing for unemployment, such as the EDD phone number, how to check your EDD payment status, or how to speak to a live person at EDD California for help.