The minimum wage is set to increase by 3.8% across all age groups following a report commissioned by the Government.
A report by the Low Pay Commission has monitored the significance of having a national minimum wage in place in light of the effects of the global economic downturn. With escalating unemployment meaning many people are increasingly willing to accept poorly paid positions, the outcome of the report was recommended the minimum wage increase in October 2009 and has been accepted.
For adults over 22, this will mean an increase to £5.80, while 18-21 year olds will receive £4.83 and 16-17 year olds will receive £3.57. Approximately 1.13 million people - 4.3% of all UK jobs - are currently protected by these measures.
According to the report, 12% of temporary positions in the UK are minimum wage, compared to 6.4% of jobs in the economy as a whole. Almost 60% of all employees' have been in the same minimum wage job for at least 12 months.
A total of 59% of all part-time employees' are currently protected by the minimum wage, with the majority of these employees being women.
The report also revealed that the amount of people on minimum wage varied between age groups. Approximately 6-7% of all 16-21 year olds are in minimum wage positions, in comparison to 3 to 3.5% of those aged between 35 and 65. At 9%, those over 65 are the most likely age group to be receiving minimum wage.
The Labour Force Survey (LFS) allowed the Low Pay Commission (LPC) to estimate that the least-skilled workers were dramatically more likely to hold a minimum wage job. About 17.5% of unskilled workers were on minimum wage compared to 5% of their skilled counterparts.
Statistics produced as a result of the Labour Force Survey (LFS) also found that ethnic minorities and those with disabilities were more likely to be in minimum wage positions.
There are considerable regional variances in terms of those who are on minimum wage across the UK. The report found London had the smallest percentage of minimum wage positions with 2.4%, while the highest levels were found in Northern Ireland (7%), the North East (6.1%), Wales (5.5%) and the West Midlands (5.4%).
The sectors offering the highest number of minimum wage jobs were cleaning (26%), hairdressing (24%), hospitality (21%), textiles (9%), social care (8%) and retail (8%). Minimum wage jobs were vastly more likely to be found in the private sector.
The minimum wage has been in place in the UK for 10 years and is designed to support a competitive economy and make a difference to the low paid. Since the stalling of economic activity in the second quarter of 2008, an increasing number of companies are seeking to reduce their costs when recruiting new staff.
These new recommendations are set to protect those who could be most vulnerable during tough economic times. This increase will also help those on minimum wage combat rising living costs.
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