Raising minimum wage sounds great, especially to a college student, but what most may not realize is that paying students more could potentially cut back on how many jobs are available at the University of Oregon. President Obama’s earlier pledge to raise the national minimum wage to $9 an hour may have unintended consequences.
“The budget is very tight for what we get for the university,” said Paul Shang, assistant vice president and dean of students. “The level of support we get from the state continues to decline, and whether or not there will be anything that makes up for that is questionable.”
Although many students at the UO get paid more than minimum wage for on-campus jobs, raising the minimum wage would give students deeper pockets.
“I feel that the rise of minimum wage will help college students earn a little more than what they are used to,” said Peter Pham, a UO undergraduate who qualifies for work study. “I think that if we have money to build the Jaqua Center then we have money to pay minimum wage students just a little more.”
On paper, it seems as though the UO has plenty of money to pay students livable wages, especially considering its well-established funding architecture and an athletic department that is recognized nationally. This however, is a common misconception. Despite UO’s funds in other departments, student salaries come from a different budget, one that is limited.
The potential increase of minimum wage has advantages and disadvantages. Regardless of whether the national minimum wage will be increased or not, students can take comfort in knowing that student employment will always be an option at the University.
“Everyone is supported and thinks that it’s a great idea, but our budgets are things that don’t increase and we want to hire students,” Shang said. “We will be doing everything we can to minimize the impact of not being able to hire students.”
The federal government, as well as most individual states, has established its own minimum wage laws. The current federal minimum wage rate is $7.25 per hour. However, in President Obama’s 2013 State of the Union Address, he suggested raising minimum wage to allow individuals a chance to “support their families.”
“Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9 an hour,” he said.