Fear of a rise in the minimum wage would put more jobs at risk of automation

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The rise in inflation in Britain’s highest wage has led to a growing number of workers being replaced by machines, a country whose main think tank has warned.
In the institute for fiscal studies (IFS) said that the minimum wage standard covers the proportion of labor may increase to 12%, between 2015 and 2020 – drawing automation in vulnerable groups, such as receptionist and store checkout operator.
According to the integrated household service centre, the bottom rung of the statutory wage in the second half of the year mainly helps individuals in the service sector, such as bars and restaurant staff, which are not easily replicated by machines.
But he adds that it is often easier to automate a little bit of paid work, with rising wages allowing employers to switch. If low wages cover 25 per cent of “working girls”, the peak of “automation” will appear.
The legal minimum hourly wage – the name “national living wage” – has been rising in recent years because of the government’s response to low wages. It rose to 7.50 from 6.70 in 2015 and will rise further to 7.83 in April.
By 2020, the Chinese government will set the minimum wage by 60% of the national average (by median).
The IFS said that if the office of independent budget responsibility had the correct forecast for wage growth, the minimum wage would be 8.56 per hour. In the 2017 election manifesto, Labour promised a minimum wage of 10 pounds per hour by 2020.


The IFS says the minimum wage increases faster than the average wage, which means more workers are affected. Those who in 2020 at the minimum wage standard, the proportion is the most common professional retail cashier and the receptionist of the top 10%, than 2015 has reached the position of the minimum (11%) were more than twice as much as 5%).
Employment has continued to rise since 2015, with the UK jobless rate at 4.3 per cent, the lowest since 1975. However, IFS warns that there is no guarantee that employment will not be affected by the minimum wage.
IFS research economist and the author of the new study Agnes Norris Keiller said: “there seems to be an insignificant impact of employment, of 6.70 pounds per hour – the interest rate for the 2015 – does not mean that for the same facts will be implemented in 2020, of 8.5 pounds per hour above rate will be correct.
“Beyond that, higher minimum standards have to start affecting employment, and we don’t know where that is. In fact, the higher the minimum, the more the impact seems to be that more automatic work is another reason to have very careful oversight.
“At the same time, higher interest rates proposed by Labour would allow more automatic workers to enter the minimum wage.”
The IFS said it was not certain that low-skilled workers would be adversely affected by an increase in the minimum wage.
People who fail to automate will soon find enough jobs, says the think tank. Using technology to replace some jobs may also create new roles that complement technology, such as the need for machines.

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