Demand & Supply , Examine the Argument in Favour & Against Minimum Wage Law in Uk

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* BUSINESS DECISION ANALYSIS* * London* *School*of Accountancy & Management Course Instructor: Prof. Armaan Nehal. N. Panchasara (ID no: ST0005944) Masters of Business Administration Assignment: A * (Using Demand & Supply: examine the arguments in favour & against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and ability of buyers to purchase goods and services at different prices. Supply It refers to the willingness and ability of sellers to provide goods and services for sale at different prices What* *is minimum wage? A minimum wage is the lowest monthly, daily or hourly that employers may legally pay to their employees or…show more content…
Does not have a substantial effect on unemployment compared to most other economic factors and so it does not put any extra pressure on welfare systems. According to Historical evidence it is noticed at current levels, that it neither hurts businesses nor reduces job creation. A study of U.K. states showed that businesses' average and annual payrolls grow faster and employment grew at a faster rate in UK with a minimum wage imposed, the study showed a correlation, but did not prove causation to claim. Increases the work ethic for those who earn very little, as employers demand more return from the higher cost of hiring these workers. Arguments in Against the Minimum wage law: Discourages further education among the poor by encourage people to enter the job market. The National Minimum Wage had a negative impact on the staffing levels within our retail stores. The stores are operating for fewer hours as compared to they were several years ago in order to absorb the impact of the strong increases. Businesses spend fewer amounts on training their employees. Reduces profit margins of business owners as employing minimum wage workers, thus it encouraged to move to businesses that do not employ low-skill workers. Businesses try to compensate their effects by raising
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