For example, policy makers may decide to increase the minimum wage when economic growth is predicted so that any negative impacts on the unemployment rate due to the minimum wage increase may be offset by growth. This paper a also examines the relation between minimum wage and unemployment. The strongest correlation is between the proportion of businesses that are impacted by minimum wage and unemployment. In other words, if only 5% of businesses pay minimum wage, they are the sector where unemployment increases. Furthermore, the minimum wage increases cause these businesses to seek more experienced and skilled workers, effectively cutting the young inexperienced workers out of the job market. I will note that this particular paper seems not to have actually been published, so it may not be the best source of information. And since I am a scientist, not an economist, I am not the best judge of the quality of this paper.
According to this analysis by the Mises Institute, there is a lot of revisionism by minimum wage proponents with respect to the effects of minimum wage hikes. Just look at the question logically: if you have a small business and can afford to hire two minimum wage employees, and the minimum wage is increased, what must be the effect on your bottom line? What are your options to mitigate that effect? Can you realistically raise prices and not expect any effect on sales? Maybe your option is to decrease hours for your two employees and work longer hours yourself. Maybe your business is amenable to automation, like many fast food places, and you fire both employees and install a robot for a large capital outlay up front, but lower costs later (plus depreciation). Etc. Logic tells me that many of the revisionist analyses obscure the pertinent data.by burying it in other data sets so that any effect minimum wage has is swamped out by other factors. This reflects the same mindset as the politicians mentioned above, who time minimum wage increases with economic growth to counterbalance its suppressive effects on employment rates of the most vulnerable.
If minimum wage does not impact employment of unskilled workers, then why are there no more extreme minimally paying jobs such as movie ushers? Why is the youth unemployment rate so high that more than 25% of young people still live with their parents? Why do so many businesses choose to hire unskilled illegal aliens and pay them under the table, thus avoiding both minimum wage constrictions and payroll taxes?
Low skilled unemployment is not affected by the minimum wage. The minimum wage is always decreasing day be day because of inflation.