Raising the minimum wage could risk youth employment opportunities, Enterprise Minister Tim Johnston has acknowledged in Tynwald.
The admission came during questioning from Julie Edge MHK on the impact for 2026 school leavers and graduates.
When the proposals were approved, the government considered the “potential risk that increasing the cost of employing younger workers who may have less experience and fewer developed skills could lead to some employers reconsidering the feasibility of hiring within this demographic”.
Mr Johnston however said that younger workers may “remain a more cost effective source of labour due to the lower statutory minimum wage”.
In response to concerns that a full economic modelling for under-18s was not undertaken, Mr Johnston cited the challenges of such analysis for the Isle of Man’s small population.
He defended the current situation by pointing to a “very healthy labour market,” revealing that “there are only 261 people who are unemployed at the moment, but there are over 487 job vacancies.”
The Minister assured that the government would “monitor the effects of the changes” and is “keeping very close tabs on the economy” through published data, including the economic dashboard and job figures.
Source: Manx News, 20 November 2025
