4 Aug 2009

Survey in American Samoa says thousands of employees affected by wage hike

10:59 am on 4 August 2009

Survey in American Samoa shows more than six thousand employees in were affected by last year's wage increase.

The findings also showed about 50 percent of businesseshave reported subsequent increases in payroll to meet the new law.

The first quarterly survey focused on information regarding sales, employment, payroll and the impact of the increases in the minimum wage to local businesses.

Of the 215 survey forms sent to the businesses in the territory, only 186 were completed and returned to the government, according to the preliminary report release by the American Samoa Commerce Department.

The preliminary report shows, 13 businesses that were sent the survey ceased operations during the survey quarter, six had combined their forms, and four more have not returned their survey.

Businesses were asked about both direct and anticipated impact of the May 25, 2008 minimum wage hike in which 63 percent responded they were directly affected while nine percent did not respond.

On the other hand, it is expected that 2009 further increase in the wage hikes will affect 67 to 74 percent of establishments and about 250 anticipated job losses.