Nebraska’s new $12 minimum wage won’t make much of an impact, expert says

LINCOLN, Neb. (KLKN) — Nebraska’s minimum wage jumped up to $12 an hour on Monday.

In 2022, more than 300,000 Nebraskans voted to raise the state’s minimum wage by $1.50 each year until it reaches $15 an hour in 2026.

Ernie Goss – an economics professor at Creighton University – said the raise to $12 won’t make much of an impact on businesses or employees.

“Moving up to $12 an hour, that’s still below what we call ‘equilibrium wage,'” he said.  “If you’re going to hire workers, even in the fast-food industry out there, you’re going to pay more than that minimum wage in 2024.” 

Goss said the raise might affect younger workers trying to start their careers. 

“The impact would be on teenagers, those individuals attempting to do part-time jobs, part-time work out of high school,” he said.  “You’ll see fewer job opportunities for those individuals.”

After 2026, the minimum wage will be altered annually based on the cost of living.