National Living Wage by then. A survey conducted in November 2015 by the Resolution Foundation and the Chartered Institute of Personnel and Development revealed that the policy is expected to have its greatest impact in the retail, hospitality and healthcare sectors. The policy has received criticism from some large employers, particularly supermarkets and the food and drink sector, where profits may be reduced by up to 10%. Some large employers have said that they may pass on the additional cost to consumers in the form of higher prices and some intend to improve productivity. The supermarket chain Lidl has said it will implement
Living wage hire people at a “living wage” is below the number they would be willing to hire at the equilibrium wage price. As such, setting the minimum wage at a living wage has been criticized for possibly destroying jobs. For more information, see price floor. Critics have warned of not just an increase in unemployment but also price increases and a lack of entry level jobs due to ‘labor substitutions effects’. The voluntary undertaking of a living wage is criticized as impossible due to the competitive advantage other businesses in the same market would have over the one adopting a living