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Employment 'unaffected' by National Living Wage, regulatory body reveals

29 Nov 2016

The National Living Wage (NLW) has not adversely affected employment, the Low Pay Commission (LPC) has stated.

The LPC, the body that monitors low pay on behalf of the government, revealed that it has found ‘no clear evidence’ of changes in employment or working hours since the NLW was introduced in April of this year.

It revealed that employment has risen in sectors that have been most affected by the NLW, such as the hospitality, retail and horticulture industries.

The LPC’s findings come in response to a warning issued by the Organisation for Economic Co-operation and Development (OECD), in which the think tank urged the UK to be ‘cautious’ with its plans to raise the NLW rate, given the wage’s potential impact on employment.

The OECD said: ‘The effects on employment need to be carefully assessed before any further increases are adopted, especially as growth slows and labour markets weaken.’

In the 2016 Autumn Statement, Chancellor Philip Hammond announced that, from April 2017, the NLW will rise from £7.20 to £7.50 an hour for workers aged 25 and over.

The government aims to increase the NLW to £9 an hour by 2020.

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