Effects of the National Minimum Wage on Unemployment and Inflation

The National Minimum Wage (NMW) was introduced by the Labour disposal on 1 April 1999 as a labour convention to replace the wages council which had been abolished in 1993 as they were considered inappropriate. It is regulate to a lower place the National Minimum final payment At 1998 and the Minimum Wages Regulations 1999 and covers tout ensemble workers except farm workers wages which be regulated by the Agricultural Wages Board. (Rose 2004) defines NMW as a marginal wage any employer must pay its workers as specify by the law and is fate as a outlay floor. All workers obligate a legal right to agnise at least a minimum wage and all employers have a duty to pay their workers not slight than a minimum wage. The labour regulation was set to rationalize poverty and income inequality, reduce the risk of firms compteting on wages in arrangement to maximise profits especially targetted at industries with a substantial proportion of lowly paid jobs. The Inland gross is responsible for enforcing the NMW. Although most of the developed countries have had some kind of National Minimum Wage system in place, (as far back as 1938 for the USA) before 1999, UK was the major western farming without a National Minimum Wage System.

NMW rates are set by the government after considering recommendations by the impression Pay Commission (LPC), an independent public body set under the NMW Act 1998 to advise the government on the NMW. The LPC was as well set up to monitor and report on the bushel of the NMW on the economy. The LPC (1998) report identified the retail, including motor trade, cleaning. security. hospitality and kindly care as sectore that accounted for the highest group with low paid employees. It is lucid that a large proportion of the workforce in these sectors have benefitted from the NMW and to some extent there has been a reduction in poverty as some lowly paid workers had a significant increase in their incomes since its introduction. The limitation in the NMW step-down poverty is that the poorest... If you want to get a full essay, order it on our website: Orderessay

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