image sourced from original article at The head of supermarket chain Asda has warned that rising minimum wage rates will make it harder for young people to find work, as many businesses shift recruitment toward older and more experienced staff. Allan Leighton said companies are facing mounting financial pressures and should be encouraged to create entry-level roles rather than confronted with higher employment costs.
A survey by a consultancy firm found that half of employers plan to hire more experienced workers following next week’s pay increase for younger staff, while nearly a third intend to cut entry-level positions. Wages for 18 to 20 year olds will rise sharply, alongside increases for those aged 21 and over, adding to concerns that young jobseekers will struggle to secure their first roles.
Retailers and hospitality firms say the wage increases, combined with higher business rates, statutory sick pay and rising energy and fuel costs, will add billions of pounds in expenses over the next year. Industry leaders warn that the added burden could lead to job losses, business closures and further strain on high streets.
