US EditionUK minimum wage is raising youth unemployment, Bank of England's Mann says
Youth unemployment in the UK rose to 15.3%, surpassing the EU rate for the first time, linked to three years of substantial minimum wage increases for young workers, Bank of England says.
- Bank of England policymaker Catherine Mann said on Sunday that sharp minimum-wage increases for young workers over three years contributed to rising youth unemployment as Britain’s rate surpassed Europe’s for the first time.
- Over the past three years, pay floors for youth age bands rose sharply, with the 21–22 rate climbing around 33% to £12.71 and the 18–20 rate jumping to £10, Labour's reforms aim to align them with the National Living Wage.
- Official statistics show 18–24 unemployment at 13.7% in the three months to November, up from 10.2% three years earlier, while the overall rate rose to 5.1%.
- Labour has pledged to abolish the youth rate of minimum wage after Ms Rayner last week admitted the policy presents a 'challenge' for businesses, with the youth rate set to rise again in April.
- Mann cautioned that the youth unemployment spike likely reflects pay-floor effects rather than a wider labour‑market downturn, having voted against the Bank of England's last three interest-rate cuts.
9 Articles
9 Articles
UK minimum wage hikes may be weighing on youth jobs, says Bank of England’s Catherine Mann
The UK's unemployment rate for 18–24-year-olds stood at 13.7 per cent in the three months to November, up from 10.2 per cent three years earlier. That marks the highest level for the cohort since late 2020
UK minimum wage is raising youth unemployment, Bank of England's Mann says
A sharp rise in Britain's minimum wage for younger workers over the past three years has contributed to an increase in unemployment for that age group, Bank of England policymaker Catherine Mann said in a newspaper interview on Sunday.
Bank Of England’s Mann Links Youth Unemployment Spike To Minimum Wage Hikes
A sharp rise in Britain’s minimum wage for younger workers over the past three years has contributed to an increase in unemployment for that age group, Bank of England policymaker Catherine Mann said in a newspaper interview on Sunday. The unemployment rate for 18-24 year olds in Britain was 13.7% in the three months to November, up from 10.2% three years earlier and its highest since the fourth quarter of 2020. Over the same three-year period, …
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