{"id":24755,"date":"2022-01-12T09:47:42","date_gmt":"2022-01-12T14:47:42","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=24755"},"modified":"2022-01-12T09:47:45","modified_gmt":"2022-01-12T14:47:45","slug":"rise-in-minimum-wage-sees-reduction-in-hours-for-some-workers","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=24755","title":{"rendered":"Rise In Minimum Wage Sees Reduction In Hours For Some Workers"},"content":{"rendered":"\n
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From 2016 to 2018, the minimum wage increased on three occasions, rising from \u20ac8.65 ($9.87) to \u20ac9.55 ($10.90) per hour (PA)<\/em><\/figcaption><\/figure>\n\n\n\n

A recent increase in the minimum wage has led to some employees experiencing a reduction in hours, with others seeing the average take-home pay rise.<\/p>\n\n\n\n

Following recommendations from the Low Pay Commission, the minimum wage has increased on a yearly basis from 2016.<\/p>\n\n\n\n

An ESRI study, funded by the Low Pay Commission, examined the cumulative effect of three recent minimum wage increases on the hours worked of minimum wage employees.<\/p>\n\n\n\n

From 2016 to 2018, the minimum wage increased on three occasions, rising from \u20ac8.65 ($9.87) to \u20ac9.55 ($10.90) per hour.<\/p>\n\n\n\n

The findings of the study show that, over the same period, the hours worked of minimum wage employees fell by almost one hour per week.<\/p>\n\n\n\n

However, the minimum wage increases were large enough to offset any earnings loss due to reduced hours, leaving the average minimum-wage worker financially better off.<\/p>\n\n\n\n

The effect on hours worked was greater for employees in certain sectors.<\/p>\n\n\n\n

Minimum wage employees in the \u201cindustry\u201d sector, which consists mainly of manufacturing workers, saw a reduction of three hours per week over the 2016 to 2018 period.<\/p>\n\n\n\n

Likewise, those working in accommodation and food saw a reduction of 2.5 hours per week.<\/p>\n\n\n\n

Again, for the average minimum-wage worker in these sectors, the wage increases were large enough to offset any earnings loss due to working fewer hours.<\/p>\n\n\n\n

For many minimum wage employees, such as young part-time workers, the minimum wage is a temporary stepping stone to higher pay.<\/p>\n\n\n\n

However, for some employees, minimum-wage employment may represent a longer-term arrangement.<\/p>\n\n\n\n

Minimum-wage workers in manufacturing are older and more likely to work full time compared to other minimum-wage workers.<\/p>\n\n\n\n

Therefore, declines in hours worked among this group may be of some concern as they may be more dependent on minimum wage employment to meet financial commitments.<\/p>\n\n\n\n

Dr Paul Redmond, an author of the report, said: \u201cAs the minimum wage increases, it is important that we monitor the impacts on employment.<\/p>\n\n\n\n

\u201cOur research has found a small reduction in hours worked among all minimum wage employees following three recent minimum wage increases.<\/p>\n\n\n\n

\u201cHowever, those working in manufacturing and in accommodation and food experienced a larger reduction in hours.<\/p>\n\n\n\n

\u201cDespite this, the minimum wage increases appear to be large enough to offset any decline in earnings due to working fewer hours.\u201d<\/p>\n\n\n\n

Ultan Courtney, chairperson of the Low Pay Commission, said: \u201cThe Low Pay Commission has an evidence-based approach to making its recommendations.<\/p>\n\n\n\n

\u201cThe report published today increases our knowledge and understanding of the impact and effects of increases in the National Minimum Wage.<\/p>\n\n\n\n

\u201cI am pleased to note that the report finds that the average minimum-wage worker was financially better off as a result of increases in the National Minimum Wage, with the increases recommended by the Low Pay Commission large enough to offset any effects of reduced hours.\u201d<\/p>\n

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