A recent social media post from a news organization in Spokane celebrated Washington’s new $17.13 minimum wage as “good news for families,” boasting it’s the highest state rate in the country. But good headlines don’t make good policy — especially when the real effects rip through the labor market and everyday life.
Yes, on Jan. 1, Washington mandated a 2.8% increase to $17.13 per hour. That’s more than double the federal minimum of $7.25, which hasn’t budged in over a decade. But let’s not kid ourselves: mandating higher pay does not create value out of thin air. It forces businesses — especially small ones — to shoulder steep labor costs. And when costs go up, businesses react by changing how and where they hire.
One group that gets hit hardest? Young workers, who rely on entry-level jobs to gain experience.
Look at the data: in Washington and other high-wage states, the unemployment rate for teens is notably higher than the national average. Recent figures show Washington’s teen unemployment rate has hovered around 14.8%, which is well above what millions of Americans experience overall — and worse than states with lower wage floors.
Meanwhile, national youth unemployment statistics show that even before policy shifts, young joblessness is elevated: roughly 10.8% of U.S. youth were unemployed in July 2025. When you already have a structural challenge getting teens and young adults into the workforce, piling on higher hiring costs makes that problem even worse.
Here’s the painful reality policymakers and cheerleaders often ignore: A mandatory wage floor doesn’t distinguish between someone with 10 years of experience and someone with no experience at all. Employers facing rising labor costs don’t say, “I’ll pay more but hire the same number of entry-level workers.” They say: “I’ll cut hours, require more experience, automate tasks, or simply hire fewer people.”
That’s not speculation — it’s basic market behavior. And it’s exactly why young people and other at-risk workers are most vulnerable when minimum wages are pushed ever higher without regard for local job markets and living costs.
It’s particularly absurd to celebrate wage hikes without asking basic questions like: Will this actually help families who struggle with childcare costs, housing, groceries, and utilities? Many low-income households earn above the minimum wage already. Meanwhile, families on fixed incomes will pay more as businesses pass labor costs onto consumers.
And for small business owners — the folks who are woven into the fabric of our communities — this isn’t abstract theory. It’s real life. They’re the ones deciding whether to keep a second location open, give workers more hours, or cut staffing altogether. Minimum wage mandates don’t make them reckless; they make them cautious — rationally so.
Arguing that higher wages are “good news” without acknowledging these predictable consequences is not just careless — it’s disingenuous. It treats economic policy like a slogan, not a system with winners and losers.
If we truly want to help families and future workers, policymakers should focus on expanding opportunity, not erecting barriers. Lowering the cost of essentials, investing in job training and apprenticeships, and encouraging pathways to higher-paying careers — those are the solutions that actually grow prosperity.
Washington’s minimum wage hike might look great on a sign or a social media post — but for many young workers, families paying rising prices, and struggling small businesses, it’s bad news dressed up as good public relations.
Chris Cargill is the President of Mountain States Policy Center, an independent free market think tank based in Idaho, Montana, Wyoming and Eastern Washington. Online at mountainstatespolicy.org.
