A job – even a low-paying job – is better than no job at all.

The National Minimum Wage Commission will soon announce its proposed changes to the mandatory national minimum wage.

For employers, another increase may mean another increase in the cost of employing someone, particularly for small- to medium-sized businesses already operating under pressure.

But the real question is what happens to the unemployed when the cost of hiring becomes too high.

In the enclosed episode of the Employers’ Voice, Gerhard Papenfus examines the impact of prescribed minimum wages, why they do not create demand for employment, and why the choice facing many unemployed South Africans is not between a low wage and a decent wage, but between a low wage and no job at all.

A wage is the price of labour. When that price is prescribed beyond what a business can afford, the job itself disappears.

Watch the full Employers' Voice message now.