REC urges Low Pay Commission to take a more cautious approach to future minimum wage increases and protect youth jobs

In its submission to the Low Pay Commission, the REC is calling for a more cautious approach to future National Living Wage increases, reflecting weakening labour demand, rising employer costs and growing concerns about youth employment. While the REC continues to support fair pay, it warns that the cumulative impact of higher wage costs, National Insurance increases and forthcoming employment reforms is making employers more cautious about hiring and investing.

Key asks:

• Adopt a more cautious trajectory for NLW increases
• Protect youth employment by maintaining differentiated youth wage rates
• Allow time for businesses to absorb cumulative cost and regulatory changes
• Assess labour market health using vacancies, hiring and training data, not just earnings
• Strengthen enforcement through the Fair Work Agency to support compliance and fair competition

The REC's evidence from their data highlights that employers are already reducing recruitment, training and investment, with young people and those entering the labour market most at risk. It argues that future minimum wage decisions should strike the right balance between supporting workers' incomes and protecting jobs and opportunities.

Read the submission here...