An analysis of the effects of the rise
in the minimum wage shows that there
will be both direct effects from increased labor costs and indirect effects from costs
passed through via other businesses in the
supply chain. Direct effects will inevitably
hurt companies that rely heavily on unskilled
labor and those that have labor costs as their
main cost, such as these in the agricultural,
services, and construction sectors. Businesses
with long, complicated supply chains will be
affected more from indirect costs.