Wage rise is barrier to job creation, says chamber
An increase in national minimum wage rates has come at the wrong time of the economic recovery, the Derbyshire and Nottinghamshire Chamber of Commerce is warning.
The chamber said a rise in rates will make it more expensive for Midlands businesses to create jobs.
The proposed increase will kick in tomorrow (1 October) and aims to benefit almost 900,000 workers nationwide.
The adult rate jumps by 15p to £6.08 per hour, whilst the 18-to-20-year-old rate will increase by 6p to £4.98. Sixteen to 17-year-olds will have an increase of 4p, to £3.68, whilst the apprentice rate goes up by 10p to £2.60.
However the chamber said it was "concerned" that the increase is being implemented at the wrong time in the economic recovery, describing it as a "barrier to job creation".
Chamber chief executive George Cowcher said: "With the unemployment rate currently standing at more than 2.51 million and the pace of economic growth still extremely sluggish, the focus should be on getting people back into jobs, not making it more expensive for businesses to employ people.
"Youth unemployment is at a record high and we can't afford to price young people out of work. It's clear from speaking to members that a significant number of firms have had to take the difficult decision to freeze wages this year."
