The final stage of a three step raise in the minimum wage set by the federal government finds economic and industry analysts considering the far reaching effects of the change. Approximately twenty states will have to mandate raises for minimum wage workers; other states already have set minimum wage limits at or above the federal standard.

Of course, those currently employed in minimum wage jobs benefit. But in an economy coping with recession and a job market that is struggling, the wage boost will cause some companies and individuals losses. For individuals, the wage increase doesn’t help the lay-off situation. Companies that are already cutting every position they can from their budget may force higher level workers to absorb the responsibilities of lesser skilled employees. And for the unemployed, this reduction in entry level positions makes the better pay a moot point if companies institute hiring freezes and stop taking applications.

Minimum wage increases have traditionally pit businesses against individuals, and always ignite debates over trickle down economics and consumer driven economies. Debate aside, however, this particular boost has been planned for two years, giving businesses time to adjust and prepare. While it will affect an already troubled economic situation, postponing the increase would have little, if any, long term benefit.