The Conservative government has been telling us recently that upping the current National Minimum Wage from £6.31 to a living wage of £7.45 (£8.55 in London) would cost 160,000 jobs.
Howard Reed an economist who has worked for leading think tank IPPR has released a report today that says actually a rise in the minimum wage to a level that allows workings to live without having to take any supplementary benefits could create around 58,000 new jobs in the UK.
"More people have more money to spend in local shops thus bolstering local employment. The Treasury wins as less people will have to rely on in-work benefits and the tax take is higher. If the savings were used to re-invest through tax cuts or public spending increases, this would create a “multiplier” effect"
Basically if work pays people so they don't need public assistance then you spend less on it and there is more money in the economy creating consumer growth. So suck it all the free-market right-wing idiots who claim better wages will mean fewer jobs.