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Economics vocabulary · Jobs and Unemployment

Minimum wage

Meaning in economics, with examples

nounCore term

In economics, minimum wage means: The lowest hourly, daily or monthly pay that employers are legally allowed to pay workers, set by the government or by law.

In Turkish: asgari ücret

How it is used

A frequent topic in the news and in economics exams: governments raise the minimum wage, and economists debate its effects on jobs and prices. Workers earn or are on the minimum wage; employers must pay at least the minimum wage.

Example sentences

  1. The government raised the minimum wage by 30% from January.

  2. Economists disagree about whether a higher minimum wage reduces employment.

Common collocations

  • raise the minimum wage
  • on the minimum wage
  • national minimum wage
  • minimum wage increase
  • wageThe money a worker is paid for their work, especially when it is calculated by the hour, day or week.
  • labour marketThe market in which workers offer their time and skills and employers hire them, setting the level of employment and wages.
  • unemploymentThe situation of people who have no job but are available for work and actively looking for one; also the number or share of such people.
  • cost of livingThe amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.

More terms: Jobs and Unemployment

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This page explains English vocabulary for learners. It is not financial advice.