Federal minimum wage hike would help millions but cost jobs

NATIONAL - A new report from the Congressional Budget Office says raising the federal minimum wage could cause a small spike in unemployment.

The agency said raising the rate from $7.25 an hour to $10.10 would help more than 16.5 million low-wage workers by 2016, but also would cut roughly 500,000 jobs.

The CBO admits this is an early estimate - saying the wage hike could actually have very little impact on unemployment, or cost up to 1,000,000 jobs.

It's a plan President Barack Obama and congressional Democrats support.

The President already signed an executive order to raise the minimum wage for federal contractors to $10.10 an hour.

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