Rising youth minimum wage is pricing young people out of their first jobs
Source: https://www.theguardian.com/profile/gabyhinsliff. "Do you remember your first crappy job? Today’s young people would wish for half your luck | Gaby Hinsliff | The Guardian." February 20, 2026. www.theguardian.com
The Gist
The author argues that by raising minimum wages for young workers to nearly match adult wages, the government is accidentally making it too expensive for employers to hire inexperienced young people. This is contributing to high youth unemployment because employers would rather hire experienced older workers for similar money.
Conclusion
The government's policy of rapidly raising the youth minimum wage to match adult rates is making it harder for young people to get their first jobs and contributing to rising youth unemployment
Premises
- Youth unemployment for 18-24 year olds has hit levels not seen outside the pandemic since 2015
- It now costs 26% more to hire an 18-20 year old than it did in 2024 due to minimum wage increases and higher employer national insurance
- When hiring costs are similar, employers will choose experienced older workers over inexperienced young people who need training and supervision
- Most young people under 20 still live with parents and aren't wholly supporting themselves, so they don't need the same wage as independent adults
- The UK's rate of young people not in education, employment or training is triple that of the Netherlands, which has a lower youth minimum wage
- Even veterans of the original minimum wage policy, including George Bain who led the low pay commission, now believe rising youth wages are pushing up youth unemployment
Assumptions
- Employers make hiring decisions primarily based on cost-benefit analysis
- Young people's primary need is gaining work experience rather than maximum wages
- The original purpose of minimum wage was to prevent exploitation while encouraging employment, not to be the main tool for raising living standards
- Most young workers are not the primary earners in their households