Because if a firm provides workers with capital equipment to increase their productivity, there is no need to make them unemployed.
£11.44 per hour
Many firms have bargaining power over their workers.
They under-pay their workers in a free market.
Minimum wages mean they correct this, and may hire more workers as a result.
Elastic
Inelastic
Firms (businesses)
Inelastic
-Economic Growth
-Increased productivity of the worker.
-Increased demand for the product the worker produces.
-Availability of substitute labour
-Time frame
-Training required
More workers in the economy will shift labour supply curve to the right, decreasing wages.