BRC says minimum wage rise will stifle job creation
The increase in the National Minimum Wage which came into effect today will stifle job creation in the retail industry claims the British Retail Consortium.
The BRC says the 2.5% rise which takes the adult minimum wage up from £5.93 an hour to £6.08 is disproportionate and makes it more difficult for retailers to maintain and create jobs in the current economic conditions.
The organisation has urged the Low Pay Commission to recommend a lower rise of 2.1% next year to ensure the minimum wage does not add to the pressures on the sector.
It also called for businesses to be given more notice of any changes to the minimum wage to help firms manage their budgets. Currently, businesses are told about the changes six months in advance.
BRC director general, Stephen Robertson, said: “Retail employs nearly three million people and a third of our staff are 25 or younger. Retailers are offering young people their first step on the career ladder and backing that up with training and development opportunities. In support of those efforts we are asking that next year’s minimum wage rise is kept at 2.1% or below.”
