23 Oct 2018

American Samoa assesses impact of minimum wage rise

8:08 am on 23 October 2018

An American Samoan task force set up a review the impact of the latest minimum wage hike says several hundred jobs are in peril.

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Photo: 123rf

On 30 September the latest step in a series of federally mandated minimum wage rises was implemented, and Governor Lolo Moliga set up the task force to assess what impact it was having.

It said private sector employment in the territory was expected to decrease by 244 full time equivalent jobs.

Most of the job losses were expected outside of the cannery sector.

The task force said this figure would be worse but for the recovery work from Cyclone Gita.

While the rise meant slightly higher wages consumption spending was expected to fall by an estimated $US600,000 this year and $300,000 in 2019.

This was expected to lead to a net increase in exports.

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