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flag UK reviews raising youth minimum wage amid record youth unemployment and rising hiring costs.

flag The UK Labour government is reviewing its plan to raise the minimum wage for 18- to 20-year-olds to match the adult rate, amid record youth unemployment of 16.1%—the highest since 2015. flag Rising hiring costs, including a 26% increase in youth employment expenses since 2024, have prompted business groups to warn that higher wages could deter employers from hiring young workers. flag While the government maintains its long-term commitment to equalizing pay, officials are assessing economic impacts, with the Low Pay Commission’s upcoming recommendations expected to influence the decision. flag Some ministers emphasize existing incentives like apprenticeship wages and reduced national insurance, but critics argue delaying the change undermines fairness and job prospects for young people.

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