Home / Knowledge / News / Increase in Minimum Wage puts pressure on retail jobs
Increase in Minimum Wage puts pressure on retail jobs
04
Oct '11
The increase of 2.5 per cent in the National Minimum Wage which comes into effect is a disproportionate rise which makes it harder for retailers to maintain and create jobs in the current climate. It takes the adult minimum wage up from £5.93 an hour to £6.08.

The British Retail Consortium (BRC) supports the principle of the minimum wage as a basic floor for decent pay but had urged the Low Pay Commission (LPC) to recommend a lower rise which would have been more in line with economic realities. Most shopworkers earn above the minimum but retail is a labour intensive sector, affected more by rising wage costs than most others.

The LPC is now considering what rise to recommend in 2012. The BRC's latest figures show customers buying less and retail job numbers down on a year ago. Against that background, retailers are calling for an increase of no more than 2.1 per cent next year to ensure the minimum wage doesn't add to the pressures on the sector. This would reflect movements in average earnings over the past year.

More notice of decisions is also needed to help firms manage their budgets. Currently, businesses are told about the change just six months before it happens.

British Retail Consortium Director General, Stephen Robertson, said: "Supporting jobs in the current climate is essential. While most retail jobs pay above the minimum wage, increases inevitably push up salaries across the board and make it harder for companies to maintain and expand their workforces.

"The retail sector has a long record of jobs growth but the latest figures show a fall. Retail employment cannot be taken for granted.

"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 per cent or below."

British Retail Consortium (BRC)

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search