Denver 7: Raising minimum wage too quickly causes unemployment, higher cost of living, economist says

August 16, 2023

DENVER — Denver's new minimum wage next year will rank among some of the highest in the country, and will be on par with what workers in Seattle and San Francisco are making this year.

This year, Denver's minimum wage is $17.29. In 2024, it will increase to $18.29. People working in the food and beverage industry who make at least $3.02 an hour in tips will be paid $15.27 an hour.

The federal minimum wage is $7.25 an hour, while Colorado's minimum wage is $13.65 as of 2023.

Dr. Kishore Kulkarni is a distinguished professor in the Department of Economics at Metropolitan State University of Denver. He said the $17.29 per hour wage is not sufficient to live in the city. Axios reported this yearthat the salary Denverites need to live comfortably is around $70,000.

“That wage price spiral keeps on feeding on itself. As the prices go up, then the wages have to be higher. As wages go up, prices go up even further," said Kulkarni.

Kulkarni said a higher minimum wage can increase the cost of production and raise prices. Raising prices is the solution Kerry O'Brien, owner of Bar 404, will likely implement to meet the new minimum wage.