Living Wage notion well intentioned misguided

The revised rate announced for the Living Wage today if introduced would increase unemployment, the Employers and Manufacturers Association says.

"If this latest version of the Living Wage were to be introduced, the most likely result would be far higher unemployment, especially youth unemployment," said Kim Campbell, EMA's chief executive.

"Those working for the Living Wage are no doubt well-intentioned but they remain in denial of the potential of the knock on effects by thinking employers can simply put up wages and salaries in this way.

"Our business environment is highly competitive, and if business were to introduce this they would have to raise their prices which would lead to reduced sales and the need to lay off staff.

"This is not just my opinion," Mr Campbell said.

"In its report last September Treasury said the proposal was 'not well targeted at low income families with children and likely to have negative economic impacts on employment and inflation.'

"Employers could best serve their lower paid staff by investing more in lifting their skills levels with training and development programmes.

"We are urging businesses to consider doing this where possible.

"Skills training and development along with helping staff identify their career paths would deliver long term and lasting benefits for their employees and to employers.

"Creating pathways for staff to realize their potential is a far more durable way to help lower paid people than putting their employment at risk through arbitrary and unjustified pay increases."

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