With the rise in National Minimum wage cause inflation, more unemployment or the failiure of more retailers after march?
Mixture of jobs cuts, prices up, profits down, stricter cost control.
I think the potential effects of minimum wage rises are often overblown although it may have some effect on companies with tight margins.
I’d suggest giving those on the lowest income a little more to spend is not going to fuel inflation. They’re hardly going to book a holiday, buy a new car etc.
But it will effect those business’s that rely on unskilled labour. Curry’s are warning about its impact. https://www.thetimes.co.uk/article/currys-boss-attacks-commercial-property-tax-rise-n22399nnq
For sectors like retail it’s a big challenge. If everyone on NMW gets a rise of approx 10% in April (when inflation could be below 4%), then employees on the next step further up a company’s pay scale will in turn be looking for close to the same increase to maintain the differential reflecting additional responsibilities/experience etc, and so on. The cumulative cost impact is subsequently much greater.
Not saying the increase isn’t merited but the implications and burden on many businesses will be more than many people appreciate and I do think will drive wage inflation further. One other consequence could see firms reduce employees hours where possible to help manage the increase, leaving them not much better off.
The retailer I work for as a minion. We are going tmo be not far from the sort if wage that a line manger receives.
Hollywood Bowl says minimum wage rise may lead to higher prices Hollywood bowl is saying it will have an impact. Wondering if it will have a knock on effect ti reits if retail / leisure close unprofital units.