Congressional Budget Office reports minimum wage increase could cost 500,000 jobs

The Congressional Budget Office reports that an increase in minimum age to $10.10 by 2016 will lead to a loss of 500,000 jobs.
According to the Congressional Budget Office,” Increasing the minimum wage would have two principal effects on low-wage workers. Most of them would receive higher pay that would increase their family’s income…But some jobs for low-wage workers would probably be eliminated.”
The minimum wage is currently $7.25 per hour and would be raised over the next three years by $2.85 per hour.
The wage increase is supported by many members of the Democratic Party.
The Christian Science Monitor writes, Congressional Budget Office, CBO, Director Douglas Elmendorf is in complete support of the report, he says the increase in wage for employers will probably decrease hiring and that the report is “completely consistent with the latest thinking in the economics profession.”
In President Obama’s State of the Union Address, he stated that an executive order was coming that would raise the minimum wage for federal contract workers.
There are two options to increase the minimum wage to either $10.10 or $9.00.