Henan Vocational University of Science and Technology, Zhoukou, Henan, China
Email: gaoya083@163.com (Y.G.)
Manuscript received December 25, 2024; accepted May 2, 2025; published June 26, 2025.
Abstract—This dissertation focuses on the impact of minimum wage increases on poverty in the United Kingdom. It acknowledges that labor market earnings are a significant component of household income and that policy makers aim to increase the income of lower-income households without compromising employment opportunities for low-paid workers. Unemployment is a concern as it can reduce consumption and exacerbate poverty, potentially hindering economic growth. The minimum wage is intended to boost the wages of low-paid workers, protect them from exploitation, and improve their standard of living, but its effect on poverty is controversial. The competitive labor market model suggests that higher minimum wages may lead to reduced employment among low-paid workers, worsening their situation. This study will investigate the actual impact of minimum wage increases on poverty in the UK by examining whether low-paid workers are more likely to lose their jobs compared to other workers not directly affected.
Keywords—minimum wage increases, poverty in the UK, employment impact, standard of living, economic growth
Cite: Ya Gao, "The Impact of UK Minimum Wage Reform on Employment," Journal of Economics, Business and Management, vol. 13, no. 2, pp. 241-253, 2025.
Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).