Impact Of Minimum Wage On Unemployment

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Impact of minimum wage on unemployment The supply and demand factors show significance towards growth of unemployment. It has been observed that the price floor above equilibrium wage should cause unemployment. There are many people who have provided their arguments against the fact. However, it has been observed that whenever there has been a rise in the minimum wage of workers, unemployment rate goes very high. For example, an organization has to maintain its expenses as well as its incomes. Due to rise of wage, Companies can become more selective. This situation is not appropriate because it excludes the low skilled employees from employment opportunities. Since full-time workers could get affected due to the minimum wage laws, it has been deemed necessary that the increase of minimum wage is not done. Furthermore, with the rise of minimum wage, greater number of people would show their desire to obtain jobs towards the minimum wage however there would be lower number of opportunities to get employment. This factor would result in maximum number of unemployment cases. Due to the rise of minimum wage the quantity of the number of low skilled workers would fall and finally it would affect the economic growth and stability of a nation.
The graph represented below shows the relationship between minimum wage and unemployment. The graph explains that the relationship between unemployment and minimum wage based on statistical representation. It is therefore clear that with
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