NYS Department of Labor claim approved after minimum wage job loss - why does raising minimum wage increase unemployment?
Just got my unemployment benefits approved through NYS Department of Labor after losing my restaurant job when they cut staff following the latest minimum wage increase. I'm grateful for the UI payments but I keep wondering - why does raising minimum wage seem to increase unemployment? My manager said they couldn't afford to keep everyone when wages went up $2/hour. Now I'm doing my weekly claims and job search requirements but seeing the same pattern at other places. Anyone else dealt with this situation? Is this something NYS Department of Labor tracks in their data?
9 comments
Join the conversation
Aaliyah Reed
This is actually a complex economic issue that affects unemployment claims. When minimum wage increases, some businesses do reduce hours or staff because of higher labor costs. However, studies show the overall effect varies by industry and region. For your unemployment situation, focus on meeting your job search requirements - you need to apply to at least 3 jobs per week and log them in the NYS Department of Labor system. The restaurant industry often has quick turnover, so you should find new opportunities soon.
0 coins
Daniel Rogers
•Thanks for the info about job search requirements. I've been applying to 4-5 places weekly and documenting everything. Do you know if NYS Department of Labor considers the minimum wage situation when processing claims? Just want to make sure I'm not missing anything.
0 coins
Ella Russell
same thing happened to me last year, got laid off right after wage increase and had to file unemployment. took forever to get through to NYS Department of Labor on the phone tho
0 coins
Mohammed Khan
•If you're having trouble reaching NYS Department of Labor by phone, I had success using Claimyr (claimyr.com) to get through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Really helped when I needed to verify some details about my claim status.
0 coins
Gavin King
Look, this whole minimum wage thing is just politicians making it harder for businesses to operate! Of course unemployment goes up when you force employers to pay more than they can afford. I've been through three layoffs in five years and every time it's because of some new regulation or mandate. At least the NYS Department of Labor processes claims quickly now, but we shouldn't need unemployment benefits if the government would stop interfering with the free market!
0 coins
Nathan Kim
•I understand the frustration but research shows mixed results. Some studies find small job losses while others show increased consumer spending that creates jobs elsewhere. What matters for OP is getting back to work through the job search process.
0 coins
Eleanor Foster
honestly not sure about the economics but glad ur getting benefits. make sure u keep filing those weekly claims on time or youll have issues with NYS Department of Labor
0 coins
Daniel Rogers
•Yeah I've been super careful about filing every Sunday night. The last thing I need is my claim getting suspended for missing a deadline.
0 coins
Lucas Turner
This reminds me of when I worked at a coffee shop in 2019 and they cut hours after the wage increase. I didn't qualify for unemployment then because I was still working part-time, but it was really stressful trying to make ends meet with reduced hours. The owner was a nice guy but said he literally couldn't afford to keep everyone at full hours. It's a tough situation for everyone involved - workers need living wages but small businesses are struggling too. At least now with your unemployment you have some income while you search for something new.
0 coins