A raise in minimum wage rates in Illinois may cause unemployment rates to soar.

According to the U.S. Department of Labor’s Web site, minimum wage will increase by 25 cents each year on July 1. Currently the minimum wage is set at $7.50 and is expected to be $8.25 by 2010.

However, the increased rate only applies to workers who are 18 or older, said State Rep. Bob Pritchard (R-Sycamore).

“We’re looking at House Bill 5141 that would make increased minimum wage rates to all people, even under the age of 18,” Pritchard said.

There are various reasons for the rising rates.

“Rate is rising because the minimum wage is low for struggle standards,” said Carl Campbell, associate professor and assistant chair of economics, adding that minimum wage has remained flat for nearly the last decade. “There has been an increase in cost of living and inflation due to the high cost of energy.”

Pritchard explained the purpose of the wage increase.

“Some people felt any worker over 18 needed more money than that to live on,” he said. “Minimum wage is intended for individuals with no experience or job skills and usually the job is temporary or supplementary.”

Economists remain unsure of whether the economy will benefit or suffer as a result.

“Economists are split because there are pros and cons to it,” Campbell said. “It is going to help people’s living standards if they are receiving minimum wage, but that’s if they still have their job.”

The possible results can range from increased layoffs to firms raising prices in order to keep their current workforce.

“We were told businesses would not be able to employ as many people,” Pritchard said. “It raises the cost of doing business in Illinois. Businesses look at the cost and quality to employ skilled workers in different states to decide where to locate.”

Businesses have experienced a few changes thus far, largely due to the increasing cost of food, gas and energy.

“Our prices raised,” said Ryan Greenlee, manager of McDonald’s, 805 W. Lincoln Highway. “We have the same amount of people that we did before [the increase in minimum wage rates].”

Minimum wage rates vary between states.

“The current federal minimum wage is still $5.85,” Pritchard said.