Research published earlier this week by the Social Market Foundation and Adecco Group concluded that many businesses will struggle to meet the cost of the National Living Wage (NLW). Without a significant productivity boost, many businesses will be forced to cut costs, which, almost inevitably, means cutting jobs.
The trouble is, the businesses likely to be most affected by the NLW are also the ones least likely to have the wherewithal to improve productivity. For example, the severely affected firms are already less likely to train people.
Chart by Social Market Foundation
As Nida Broughton, the SMF’s chief economist says:
The low stock of skills amongst those affected by the new National Living Wage, and the relative lack of access to in-work training, means that businesses and the Government will have to act to make sure that workplace productivity rises alongside the new regulated wage.
If businesses can increase productivity there is less…
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Utopia, you are standing in it! 
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