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Re: Restore Britain chronicles
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Originally Posted by Carth
Honest questions.
Do you think that forcing employers to pay a wage more than they can 'comfortably' afford actually leads to better job creation and opportunities for the unemployed?
Would it be fair to assume that employers (businesses) faced with having to pay employees a wage that - at best - leaves them breaking even over the financial year, have no problem at all in moving that business to a country where lower wages* allows them to make a profit and ensure future growth?
*and sometimes a nice tax incentive
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Do you mean like Waitrose, who made £1.5 billion post tax profit last year, or the businesses in this chart (National Minimum Wage by occupation)?
Pretty sure not many of them will be off-shoring...
Research has shown that
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The NLW’s effect on total employment is limited Minimum wage increases increase the cost of labour for the lowest-paying jobs in the economy, which has the risk of making labour too expensive and causing job losses. However, overall, the evidence suggests that the introduction of the NLW has not had a significant effect on employment.
The LPC’s review of the NLW from 2016 to 2020 reported that research commissioned by the LPC since the introduction of the NLW in 2016 found no or limited evidence that the NLW reduced aggregate employment. The Institute for Fiscal Studies analysed the impact of the NLW on employment at the end of 2021 and concluded “consistent with previous research from the UK, we estimate that any impacts on employment of the introduction of the NLW and its upratings were small, and not statistically significantly different from zero”.
LPC analysis shows that between 2019 and 2025, groups who are more likely to be on the NLW have seen better employment outcomes than other groups.
This is also true for areas in the UK with a high proportion of NLW workers.
There are signs that the NLW has some effect on employment in businesses with a high proportion of NLW workers: analysis by the Bank of England shows that in 2025 firms who had a high percentage of employees on the NLW had slightly worse employment outcomes than other firms.
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https://researchbriefings.files.parl...5/CBP-7735.pdf
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