Minimum wage move restricts choice for young

Minimum wage move restricts choice for young people

Media release

4 April 2000

Minimum wage move restricts choice for young people

Employers' Federation Chief Executive Anne Knowles says the Government's decision to lower the age at which people must be paid the adult minimum wage could restrict employment opportunities for young people.

"Lowering the age for the adult minimum wage from 20 to 18 was doubtless a decision made with the best intentions, but it could lead to the loss of job opportunities for young, unskilled people who most need the job experience," Ms Knowles said.

"Accepted international research shows a 10% increase in the youth minimum wage leads to a 2-3% loss in employment.

"It's important that people's ability to offer and enter into employment is not unnecessarily restricted by legislation - otherwise jobs can be lost."

Ms Knowles said young people would benefit from an employment market that offered more, not less, choice.

"Once again, a decision has been made without consultation with those affected. Employers believe there would have been a better outcome for young people if employers and other interested parties had been consulted," Ms Knowles said.

End

Contact Anne Knowles 04 4994111 or 021 425 868 Kathryn Asare 04 4994111 or 021 555 477

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