Minimum wage in the UK also goes up.

July 13, 2009 – 2:06 pm – No Comment

A national report issued by the United Kingdom Government says that the country’s minimum wage is set to increase by 3.8% for all age groups.

A report from the Low Pay Commission has monitored the importance of a national minimum wage during a recession. It has shown that during the current recession, many people are taking minimum wage jobs just to make ends meet. When the company suggested that the minimum wage be increased in October of this year, the Government agreed.

In the U.K. minimum wage is set for age groups and adults over 22 will receive an increase to 5.80 pounds, 18-21 year olds will receive 4.83 pounds and 16-17 year olds will receive 3.57 pounds. In the U.K., however, only 4.3% or 1.13 million people will be affected by this increase in minimum wage. Twelve percent of temporary positions in the United Kingdom are minimum wage, compared to the number in the economy as a whole (6.4%),

The number of those who have minimum wage jobs based on age, from the report, is relatively interesting. Of those between the ages of 16 and 21, six to seven percent hold minimum wage positions. Of those between the ages of 35 and 65, only three to three and a half percent have minimum wage jobs. The age group with the largest amount of minimum wage positions is those over the age of 65, which nine percent of that group holds minimum wage positions.

Those who are more skilled in their profession are also more likely to have higher paying jobs and the Labour Force Survey knew this. The LFS allowed the Low Pay Commission to estimate that those who were less skilled were much more likely to have a minimum wage job than their more skilled peers. The numbers came out to be about 17.5% of those who were unskilled to 5% of those who were skilled.

The United Kingdom has had a minimum wage set in place for the past 10 years and it was created to support the economy competitively and also increase the level of living for those who were earning very little at their jobs. Since the recession began in the second quarter 2008, a large number of companies in the country are looking at reducing wages when they do hire someone. The new minimum wage will protect those who are being forced into lower paying jobs. Also, if people are earning more money, they can spend it, therefore, helping stimulate the economy.