Conclusion

2.122 In this Chapter we have assessed the overall impact of the minimum wage, focusing on the most recent upratings which by our calculations will have increased the earnings of over one million workers. Despite its widening impact, we continue to find strong support for the minimum wage from employers as well as workers. Evidence from econometric studies we commissioned suggests any negative effects of the minimum wage have been minimal. Most firms have been able to accommodate the increases without too much difficulty.

2.123 It is important that we continue to monitor the impact of the minimum wage, improving our understanding of the way it affects the labour market in particular and the economy in general. Among the key issues for future consideration by the Commission are a more detailed analysis of our estimates of the number of beneficiaries; consideration of the role of migrant workers; and an assessment of the ability of firms to pass on the costs of the minimum wage in prices.

2.124 We now go on to consider in Chapters 3, 4 and 5, those sectors and groups of workers where the impact of the minimum wage has been most acute, examining in detail the issues affecting them.