The Low Pay Commission (LPC) is being urged to put a pause on the youth minimum wage rises, in order to protect jobs.
The Recruitment and Employment Confederation (REC) believes that abolishing youth rates will only make the government’s aim to get nearly one million young people into work harder.
Lessening Business Incentive to Hire Younger Workers
Shazia Ejaz, Director of Campaigns at the REC, explained, “With firms struggling with rising costs across the board, and youth unemployment rising, businesses want caution from government when it comes to minimum wage.
“After huge rises in the last few years, moderation in rises across all rates is now called for, including ending the period of faster rises for the youth rates, as so many young people are struggling to find work.”
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Ejaz added, “Recent upratings have squeezed margins and impacted investment and training opportunities with some firms choosing ready-made experience over developing new talent.
“That makes it harder for young people to get a foothold in an already uncertain labour market, increasing the risk of longer spells out of work and the very cycle of inactivity that the government is trying to tackle.”
The LPC is expected to make its recommendation in October, with the final rates announced shortly after (late autumn) and implemented the following April.
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