Wealth Knowledge August 2016 - National living wage not causing job cuts
The new NLW of £7.20 an hour was introduced on 1 April 2016 for workers aged 25 and over.
Of the 500 businesses surveyed by the Resolution Foundation, 35% said the NLW increased their wage bill with 6% describing the increase as large.
A further 16% expect the NLW will increase their wage bill in the future. Only 14% of businesses used less labour by ofering fewer hours, reducing staf or slowing recruitment.
Further indings show that of those afected by the NLW:
• 36% took short-term action by increasing prices
• 29% lowered their proits
• 15% invested in more training
• 12% invested in more technology