No impact assessment carried out ahead of minimum wage decision

Less than 60 people responded to a survey

The enterprise minister has confirmed no impact assessment was carried out on how a rise in the minimum wage might affect jobs for young people.

However, Tim Johnston says a survey was issued to people on, or close to, minimum wage levels to gather demographic information, and was also circulated to employers.

Only 59 people responded, which he acknowledges provides limited data:

Onchan MHK Julie Edge says the absence of an assessment on young people contradicts government’s commitment to retain them.

Meanwhile, Treasury has admitted a "potential risk" was identified that raising the cost of employing younger workers could lead employers to reconsider the feasibility of hiring within this age group.

Alex Allinson says employing workers younger than 18 may become more attractive to some businesses because their statutory minimum wage is lower.

From 1 April there will be an increase in the Youth Rate (for those who are over compulsory school age but under 18) from £9.55 to £10.76.

It was approved alongside the 9.9 percent increase in the minimum wage, from £12.25 to £13.46.

MHK Julie Edge believes there is significant concern within the business community about the minimum wage changes and called on Treasury to carry out an economic viability simulation to assess the impact on younger age groups.

But Dr Allinson says the Island currently has a "very healthy labour market":