A new study from the Employment Policies Institute has warned that a proposed federal minimum wage of $25 an hour would eliminate nearly five million jobs across the United States, with fast-growing Sun Belt states bearing the brunt of the losses. Rebekah Paxton, research director at the institute, told Fox News Digital that states which have seen large population growth in recent years would be disproportionately hit, alongside Ohio and Pennsylvania, raising concerns about the economic impact of sharply raising the federal wage floor.

The current federal minimum wage stands at $7.25 an hour, so a $25 mandate would represent a substantial increase. Paxton's analysis suggests that businesses in lower-cost regions, particularly across the Sun Belt, would struggle most to absorb such a steep rise in labour costs, potentially leading to significant job cuts in states that have otherwise been attracting new residents and economic activity.