Inflation, cost of living raise Oregon’s minimum wage, but many C.O. businesses know they have to pay more

(Update: Adding video, comments from BOLI, Bend business)

BEND, Ore. (KTVZ) -- Saturday marks the annual increase in Oregon's minimum wage, as across the state, the minimum wage will increase by 70 cents, no matter the area. But the wage varies at three levels, depending on what part of the state you live and work in.

Deschutes County's minimum wage, for example, is increasing from $13.50 an hour to $14.20, beginning Saturday. The Portland area sees a rise to $15.45 an hour, while the new rate will be $13.20 an hour in rural counties.

This is a yearly resetting by the Oregon Bureau of Labor and Industries, based on inflation calculations for the year ended in March.

Lauren van Enckevort, wage and Labor Administrator for BOLI, says they calculate the wage increase based on the U.S. Consumer Index.

"We used that data, which it was an increase of 5%. That's usually tied to inflation and things like that. So it was an increase of 5%," she said. "And what we do is then calculate that from what our current minimum wage is and the standard minimum wage area."

One Bend business owner, Jessica Pollard, said most small businesses are already paying their employees more than minimum wage -- they have to, to attract workers..

That's because the cost of living in the area is so high, employers can't find workers if they pay minimum wage.

The latest information from the U.S. Census Bureau showed the average cost of living in 2022, including rent, was $2,897 a month for one person.