The lowest salary that employers are legally permitted to pay their workers is referred to as a minimum wage. Workers who make less than the minimum wage might decline to offer their services. (Hovenga, Claire, Naik, and Block). The minimum wage is determined by the nation's labor regulations. In the United States, as of 2016, the federal minimum wage remains $7.25 per hour (United States Department of Labor, Nov. 2017). Increasing the minimum wage will have serious negative impacts on the young job seekers and workers. In this speech, I identify some of the ways in which minimum wage increment is likely to hinder the youths.
Connective: Effects minimum wage increase hinder on the youth
The first real impact is higher rates of teen unemployment since teenagers do not have the necessary skills and experience required in the job market.
By enforcing wage hikes on small businesses, jobs performed by the low-skilled laborers are destroyed and poverty is not addressed.
Businesspersons become reluctant to employ teenagers without required skills
Most teens remain unemployed (Dube, Lester and Reich 663).
Consequently, the burden squarely lands back on the shoulders of their parents to continue catering for their daily basic needs.
Connective: Thus raising the minimum wage bill does not help teens in getting jobs due to their law skills.
Minimum wage increment drops in summer jobs and employees earn very little.
It is important to note that these summer jobs are necessary for the teenagers to gain experience during their holydays.
After closing school teens look for jobs to earn some income and keep themselves active.
When the minimum wage is increased, it becomes expensive for the employers to accommodate and pay students on internship programs.
Competition from other people makes it difficult for the youths to get a job.
The teen employees miss job opportunities and cannot earn the much needed income.
As a result, the number of summer jobs is greatly cut down by business in order to help them lower the amount of money spent on paying wages.
Connective: Teen employees are always disadvantaged since whenever he employers want to cut down on cost they target the less skilled workers.
Sometimes employers are unable to employ unskilled and inexperienced teens when the minimum wage is increased (Wachte 37).
As the cost of labor becomes more expensive, businesses cannot afford to hire more workers they will only consider individuals with skills and experience.
Businesses do this in order to maximize on their profit by tapping on the experience and skill of the staff.
The inexperienced and unskilled youths remain jobless hence unable to cater for their basic needs and support their families.
Teens may terminate their formal education in order to enjoy the increased wages (Kellermann 11).
To them, it may seem like a benefit since they may feel happy at the beginning because they do not have many family related responsibilities.
However, it may hit them back in the future after they start their own families and many teens may see it as a shortcut to a good life.
Such dropouts may face stagnation on their positions as they lack the necessary qualifications for promotion hence minimal opportunities for increment of their salaries.
This can make them result to criminal behaviors such as prostitution.
Connective: Teens are likely to forego education if they find a well-paying job thus raising the minimum wage can destroy their future in case they refuse to attend school to work.
Conclusion
In conclusion, it is understandable that every man and woman wants a higher compensation for his or her services. However, for the youths, an increase in the compensation presents major hindrances in joining the workforce. As a result, they are denied the opportunity to learn, develop skills, and acquire experience. They are also rendered jobless hence unable to meet their private wants.
Works Cited
Dube, Arindrajit, T. William Lester, and Michael Reich. "Minimum Wage Shocks, Employment Flows, and Labor Market Frictions." Journal of Labor Economics 34.3 (2016): 663-704.
Hovenga, Claire, Devaja Naik, and Walter E. Block. "The Detrimental Side Effects of Minimum Wage Laws." Business and Society Review 118.4 (2013): 463-487.
Kellermann, Kim Leonie. "State of Research." The Impact of Minimum Wage Regulations on Educational Incentives for the Youth. Springer Fachmedien Wiesbaden, 2017. 5-21.
United States Department of Labor, Nov. 2017. https://www.dol.gov/
Neumark, David and William Wascher. "The Effects of minimum Wages on Employment." FRBSF Economic Letter 2015 (2015): 37.
