Low-paid workers could be priced out of the job market when another recession hits if the UK does not slow down its increases to the minimum wage, a think tank has warned.
The Resolution Foundation said that future rises should be done more cautiously, despite applauding the work to improve the minimum wage since 2015.
Increases to the minimum wage have not halted improvements in employment rates, but Reuters reports the Resolution Foundation as saying that this is based on economic progress that may only be temporary.
“The minimum wage is at a crossroads,” the Resolution Foundation says. “Policymakers seeking to combine ambition with caution might wish to aim for a still fast – but slightly slower rate – of increase than recently seen.”
The Resolution Foundation echoes calls made by the Labour Party in recent years that rises should still continue, and that a rate of a around £10 an hour would help alleviate low paid work.
This would mean that jobs paying less than two thirds of the median hourly wage could be removed.
“Such an ambitious move would transform the labour market,” Reuters quotes Resolution Foundation analyst Nye Cominetti as saying.