-If labour is more expensive, employers want less of it.
-Workers are paid for the revenue they can make for the firm.
-Workers who are not skilled enough to make revenue above the minimum wage will not have a job.
Trade unions typically restrict supply of labour (by insisting firms hire from the union), shifting labour supply curve left and pushing up wages.
Firms (businesses)
-Economic Growth
-Increased productivity of the worker.
-Increased demand for the product the worker produces.
More generous welfare payments decreases the incentive to work, shifting labour supply curve to the left.
£11.44 per hour
Inelastic
-Labour substitutability (for capital)
-% of firm's cost
-Time period
-Necessity of the work