National Minimum Wage Essay

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(The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice. Any changes to the rate are normally introduced in October each year.The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. It doesn't matter how small an employer is, they still have to pay the minimum wage. The minimum wage rate depends on a worker's age and if they're an apprentice.) A labor market is where employers and employees meet to exchange working hours for payment of wages. In the labor market wages are determined by the demand and supply of labor, for example if there is a decreasing population then that means that there …show more content…

It reduces poverty rates across the UK and other countries where this law is implied as people are getting payed more and it encourages more people to work. This positive impact means that governments won't have to worry that much about homeless shelters and areas for the poor to live. Also reducing slums and favellas in low to middle class countries. Finally, the nmw is good because it decreases suicide rates and a study shown on BBC shows that rates have decreased by 13.7% since the implication of the nmw in 1999. In the UK the NMW has help the whole country improve and move forward, by using the national minimum wage it reduces poverty and their for more people have money to spend and they will spend it in shops and the shops will grow their for making the whole mark grow Improving the countries economy. As their is advantages their is disadvantages, as the labor price increases many companies and shops have to reduce their labors because it would be to expensive for them and then they would have to take the extra cost of labor out of the clients pocket which leads to a less demand for the product which isn't good for the companies sales, their for many people will start going toward the black market and get employees for a cheaper price which is illegal but it a risk worth taking for some

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