Release of the Minimum Wage Impact Study in Coconino County
WORKERS
We have so much tourism in Flagstaff. We should grow in other economic objectives and diversify employment opportunities. It will take the burden off focusing solely on minimum wage increases to promote
economic growth.
The terminology ‘minimum wage’ is troubling. It is like we are asking - what is the minimum we can get away with. Can we change the mindset... to one that is more supportive of workers’ wellbeing?
We have an overreliance on inflation-driven revenue growth instead of organic revenue growth such as customer demand, expansion, or innovation. This is creating insecurity in the labor market.
BUSINESSES
It’s not just about wages; we need to focus on creating a skilled workforce. Training programs could help bridge the gap and make higher wages more sustainable.
Both businesses and workers share similar impacts in the following areas:
Experiencing financial struggles and having concern about making it in Flagstaff.
Feeling concern for local businesses, small and large.
Having a desire to continue living and working in Flagstaff.
WHERE HAVE IMPACTS BEEN POSITIVE?
WHERE HAVE IMPACTS BEEN NEGATIVE?
Fewer jobs in the following than there would have been:
Leisure & Hospitality Industry:
Across all occupations, workers make an average of:
$1,250
MORE
per a year than they would have.
Plus more establishments, jobs, and total wages the Leisure and Hospitality Industry than there would have been.
All those employed in the Trade, Transportation, and Utilities industry make:
$744
MORE
per a year than they would have.
1600
JOBS
CONSTRUCTION
240
JOBS
scientific occupations
1800
JOBS
manufacturing inductry
Retail and Hotel Workers make:
$2,100 or
$3,300 MORE
per a year than they would have.
Lower median annual wages in the following than it would have been:
$4,600
management occupations
$4,700
Health care occupations
$6,600
Professional Services occupations
Release of the Minimum Wage Impact Study in Coconino County
The Coconino County Workforce Development Board (CCWDB) announces the release of the Minimum Wage Impact Study in Coconino County recently conducted by the Northern Arizona University Economic Policy Institute (NAU-EPI). This comprehensive analysis provides key insights into the economic effects of the minimum wage policy in our region.
The study’s findings aim to support informed decision-making by local, state, and federal policymakers while guiding our workforce and economic development strategies. Specifically, this report will help:
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Address potential challenges and mitigate negative impacts of minimum wage policies.
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Identify and promote strategies that benefit both employers and workers.
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Develop workforce initiatives that ensure a resilient and adaptable labor market.
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Provide insight into job and skills training needs to better prepare the workforce.
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Coordinate efforts to expand entrepreneurial training and microenterprise services.
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Deliver technical assistance strategies to help small and emerging businesses thrive.
CCWDB Executive Director Billy Francis emphasized the significance of this collaboration: "We appreciate NAU EPI’s depth of analysis, and the valuable insights provided on both the qualitative and quantitative aspects of the minimum wage impact study. The data and observations presented offer an excellent foundation for understanding the broader impacts on our local economy."
CCWDB Chair Bruce Sobczak highlighted the importance of this study in shaping policy discussions: "The topic of minimum wage in our community has been divisive in recent years. We pursued this study to provide a data-driven analysis of the issue and identify proactive solutions. We hope that the findings will guide leaders and policymakers in addressing workforce challenges, including:
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Workforce housing policies to support workers and employers.
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Economic diversification measures to strengthen Flagstaff’s economy.
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Wraparound services to increase labor force participation.
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Innovative strategies to help small, local businesses remain competitive.”
The Minimum Wage Impact Study is now available on our website. Additionally, NAU EPI will present a summary of the report’s key findings at the Coconino County Workforce Development Board meeting on March 20,2025 . We encourage community members, business leaders, and policymakers to review the study and join us in shaping a sustainable and thriving workforce for Coconino County.
We appreciate NAU EPI’s depth of analysis, and the valuable insights provided on both the qualitative and quantitative aspects of the minimum wage impact study. The data and observations presented offer an excellent foundation for understanding the broader impacts on our local economy.
BILLY FRANCIS
Executive Director