Using supply and demand diagrams examine the likely economic effects of the imposition of a legal minimum wage. Discuss the reaction of the business community in the UK to the announcement of a national living wage which will be phased in during the next five years.
Minimum wage is the minimal pay per hour that all employees are entitled to by law. However the national minimum wage can differ depending on the age of the employee. No matter how small or big the company is, it is mandatory for the employers to play their workers according to the minimum wage. Whereas the national living wage is an hourly amount set independently and to is revised annually. It is determined according to the primary cost of living in the United Kingdom. The …show more content…
Many corporations are looking at what the fallouts will be and in what ways budgets can be moved around to pay off workers based on the new national living wage structure. Retailers have have to take on extra hours in the business themselves and most probably may have delay their investment plans to diminish the costs. Essentially, these measures may lead to the potential downfall in the businesses and as well as the profitability of the store. “Most companies affected will have to increase productivity, raise prices and reduce staff levels. This might also affect companies providing services to the public sector” said Neil Carberry, director of employment and skills at the Confederation of British …show more content…
The Minimum Wage, Economics Online New Analysis Theory Comment. Available at:http://www.economicsonline.co.uk/Market_failures/Minimum_wage.html (Accessed Date: 5/11/2015)
Russell Cooper (2011) The Effects of a Minimum Wage. Available At: http://2012books.lardbucket.org/books/theory-and-applications-of-economics/s15-02-the-effects-of-a-minimum-wage.html (Accessed Date: 5/11/2015)
Shane Hickey (2015) Business community warns living wage could hit employers and staff, Big increases in wage bills for small businesses will lead to job losses and staff hours being slashed, say business owners. Available At: http://www.theguardian.com/small-business-network/2015/sep/16/business-community-warns-living-wage-could-hit-employers-staff (Accessed Date:
Minimum wage is the minimal pay per hour that all employees are entitled to by law. However the national minimum wage can differ depending on the age of the employee. No matter how small or big the company is, it is mandatory for the employers to play their workers according to the minimum wage. Whereas the national living wage is an hourly amount set independently and to is revised annually. It is determined according to the primary cost of living in the United Kingdom. The …show more content…
Many corporations are looking at what the fallouts will be and in what ways budgets can be moved around to pay off workers based on the new national living wage structure. Retailers have have to take on extra hours in the business themselves and most probably may have delay their investment plans to diminish the costs. Essentially, these measures may lead to the potential downfall in the businesses and as well as the profitability of the store. “Most companies affected will have to increase productivity, raise prices and reduce staff levels. This might also affect companies providing services to the public sector” said Neil Carberry, director of employment and skills at the Confederation of British …show more content…
The Minimum Wage, Economics Online New Analysis Theory Comment. Available at:http://www.economicsonline.co.uk/Market_failures/Minimum_wage.html (Accessed Date: 5/11/2015)
Russell Cooper (2011) The Effects of a Minimum Wage. Available At: http://2012books.lardbucket.org/books/theory-and-applications-of-economics/s15-02-the-effects-of-a-minimum-wage.html (Accessed Date: 5/11/2015)
Shane Hickey (2015) Business community warns living wage could hit employers and staff, Big increases in wage bills for small businesses will lead to job losses and staff hours being slashed, say business owners. Available At: http://www.theguardian.com/small-business-network/2015/sep/16/business-community-warns-living-wage-could-hit-employers-staff (Accessed Date: