Minimum wage rise could affect jobs, but not recruiters
23 September 2014
Business groups have said Labour’s plan to raise the National Minimum Wage to £8 an hour could affect job creation, but the Recruitment & Employment Confederation (REC) says it may not have much effect on recruiters.
Tue, 23 Sep 2014
Business groups have said Labour’s plan to raise the National Minimum Wage to £8 an hour could affect job creation, but the Recruitment & Employment Confederation (REC) says it may not have much effect on recruiters.
REC director of policy and professional services Tom Hadley told Recruiter as long as any increases were properly managed, he did not see any specific problems for recruiters.
“As long as increases in the NMW continue to be decided by an independent body, rises are clearly signposted in advance, and its payment is enforced across all employers and sectors, there is no reason for changes to cause specific problems for recruiters.”
Katja Hall, business lobbying organisation CBI’s deputy director, said in a statement the wage is at the highest it can be without putting job creation at risk.
“Raising wages in this way would put serious strain on businesses, particularly hard-pressed smaller firms with tight margins, which would end up employing fewer people,” she said.
John Longworth, director general of the British Chambers of Commerce, said businesses agreed the wage should rise in line with economic improvement but wanted an evidence-based approach rather than political parties using it to gain support.
Labour leader Ed Miliband announced the plan at the Labour party conference on Sunday. It would see the wage rise from £6.50 in October to £8 by 2020.
In January this year, chancellor George Osborne backed the idea of the wage reaching £7 an hour by October 2015.
Business groups have said Labour’s plan to raise the National Minimum Wage to £8 an hour could affect job creation, but the Recruitment & Employment Confederation (REC) says it may not have much effect on recruiters.
REC director of policy and professional services Tom Hadley told Recruiter as long as any increases were properly managed, he did not see any specific problems for recruiters.
“As long as increases in the NMW continue to be decided by an independent body, rises are clearly signposted in advance, and its payment is enforced across all employers and sectors, there is no reason for changes to cause specific problems for recruiters.”
Katja Hall, business lobbying organisation CBI’s deputy director, said in a statement the wage is at the highest it can be without putting job creation at risk.
“Raising wages in this way would put serious strain on businesses, particularly hard-pressed smaller firms with tight margins, which would end up employing fewer people,” she said.
John Longworth, director general of the British Chambers of Commerce, said businesses agreed the wage should rise in line with economic improvement but wanted an evidence-based approach rather than political parties using it to gain support.
Labour leader Ed Miliband announced the plan at the Labour party conference on Sunday. It would see the wage rise from £6.50 in October to £8 by 2020.
In January this year, chancellor George Osborne backed the idea of the wage reaching £7 an hour by October 2015.
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