# Businesses warn minimum wage rise could threaten jobs and youth hiring

- URL: https://talkfuse.com/story/business-backlash-over-plans-to-hike-the-minimum-wage-as-firms-say-jobs-will-be-at-risk/
- Published: 2026-10-27T23:03:34+00:00
- Updated: 2026-10-27T23:17:14+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16244201/Business-backlash-plans-hike-minimum-wage-firms-say-jobs-risk.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: Business, Culture, Economy, Food, Space, Technology, World

## Key points

- Firms warn another wage rise could put jobs at risk.
- The reported increase is 3.9 per cent.
- Retailers estimate wage and NIC changes cost 115,000 jobs.

## Summary

Businesses have warned that a further rise in the minimum wage could put jobs at risk, especially entry-level roles for young people, as Labour faces pressure to ease employers’ costs in the Budget. Hospitality and retail leaders say higher pay, employer National Insurance contributions and other rising expenses are making it harder to hire, retain staff and invest.

The reported 3.9 per cent increase would take the national living wage for people aged 21 and over from £12.71 to about £13.20 an hour, and the rate for 18 to 21-year-olds from £10.85 to around £11.27. UKHospitality says many firms will struggle to absorb the extra cost, while the British Retail Consortium estimates minimum wage rises and employer NIC changes have cost the sector £6.5 billion and 115,000 jobs. Chancellor John Healey has acknowledged a trade-off between minimum wage levels and employment.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.