Oregon Public Broadcasting

Labor officials in Oregon announced Wednesday that the down economy will keep Oregon’s minimum wage flat for the next year. Rob Manning reports.

Oregon voters approved an initiative in 2002 to increase the minimum wage and peg future increases to the consumer price index. But state labor officials say that this year, the price index decreased.

That doesn't mean the minimum wage will drop, but it will stay level at $8.40 an hour through 2010.

Oregon labor commissioner, Brad Avakian, says the stable wage will help workers and businesses.

Brad Avakian:  “People who are our lowest wage earners are still able to count on some type of a steady minimum wage. But at the same time, employers don’t see an increase when the economy is struggling, so it helps employers stabilize during the tough times, too.” 

According to the U.S. Department of Labor, Oregon has the second highest minimum wage in the country. Washington is number one.