The most significant result of this study was the small number of reports received. While this is not a measure of impact, it helps to put into proper perspective isolated reports that might otherwise lead to unwarranted generalizations. Only about 500 newspaper accounts, letters and oral statements alleging adverse effects were noted, and in only about 150 cases did there seem to be some reason for believing that the minimum wage had adversely affected employment. (About 100 of the reports were not followed up because the names of the firms involved were not available to the Divisions.) These 150 plants employed about 12,000 workers prior to the layoffs and indications were that about 1,800 workers may have been discharged as a result of the minimum wage. There is no way of determining what proportion of all business closings or employment reductions which resulted from the minimum wage increase are reflected in these reports.
Almost one-fifth of the reports of adverse effects concerned Southern sawmills. Another fourth of the total concerned apparel manufacturing plants. The remainder were scattered over a wide variety of industries, with no significant concentrations in particular industries.
There was a small amount of rehiring of laid-off workers after March 1, and some hiring of new workers to replace those discharged. However, at the time the plant visits were made, most of the jobs involved remained unfilled. Employers cited unfavorable seasonal or cyclical factors and improvements in plant efficiency as among factors in reduction in employment. There was some evidence of increases in production quotas, and a number of complaints by workers of increased quotas in piece-rate industries were received by the Department.
In almost all of the cases where employers evaluated the work performance of discharged workers, laid-off workers were said to be unsatisfactory. Information on the characteristics of laid-off workers was too sparse to be used in a statistical summary.
Several plants which laid off employees as a result of the higher minimum wage were adjusting or planning to adjust to higher wage costs through technological or management improvements. The information was obtained, however, too soon after the change in the minimum and was not sufficiently detailed to evaluate the effectiveness of these adjustments. It is expected that the Department's intensive studies of plants severely affected by the $1.00 minimum will provide valuable information on the nature of such adjustments.