Minimum wage increase will entrench unemployment in certain groups

Stephanie Lis appears on BBC Radio Ulster

Following calls for an increase in the National Minimum Wage (NMW), Stephanie Lis appeared in BBC Radio Ulster to argue against the measure.

Ms Lis stated that many companies with limited resources will not be able to afford this wage and will be priced out of the market. The wage increase will result in a considerable increase in business costs, preventing companies from hiring staff.

Ms Lis added that a major problem with increasing the NMW, is the fact that it will price the young, old and unskilled out of the employment market. The longer that these people are unemployed, the further their skills will deteriorate. This is likely to create an insider-outsider trap in the labour market entrenching unemployment further in certain groups.

Listen to the full programme here. Segment begins at 51.28.

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