Fox News co-host Eric Bolling claimed unequivocally that minimum wage increases “cost jobs, period,” citing the story of a Michigan restaurant that closed after the state increased its minimum wage in September. In fact, the unemployment rate in Michigan has decreased since the wage increase took effect.
On the January 5 edition of The Five, Bolling criticized minimum wage increases that took effect in states across the U.S. on January 1. Bolling highlighted the case of a Michigan restaurant that closed after the state raised the minimum wage as evidence for his claim that “minimum wage rate hikes do cost jobs, period.”
But Michigan's unemployment rate has fallen after the state increased the minimum wage. Starting on September 1, 2014, Michigan's minimum wage rose from $7.40 an hour to $8.15 an hour. In the months following the wage increase, the unemployment rate fell from 7.2 percent in September to 6.7 percent in November, the lowest since April 2006.