NMW rise risks loss of job opportunities

Ryan Bourne appears on BBC Radio Humberside

IEA Head of Public Policy Ryan Bourne spoke on BBC Radio Humberside discussing the Low Pay Commision's recommendation to increase the minimum wage to £6.50. Though he assessed that this figure may not affect the economies preformance as a whole, Ryan expressed a worry of its impact on youth unemployment and the ability of low skill individuals to gain employment. This effectively traps individuals becuase they are not able to get the skills associated with 'on the job' training enabling them to get higher paid jobs. 

Ryan also discussed the prospect of unscrupulous employers should the minimum wage not rise. He argued that people are free to not work for firms with excessively low wages and that there is evidence in the advent of social media of campaigns created that expose these companies. Finally, Ryan expressed the need to provide a more regionalised minimum wage that accurately assesses the cost of living and an employers ability to pay in an area.

You can listen to the full programme here. Ryan's segment begins at 54.05.