In which town did sector employment rise?
After a regional minimum wage rose by 10 per cent, researchers compared three towns over two years. In Eastbrook, which depends on tourism, employment in cafes and hotels fell by 4 per cent while average hours worked per employee stayed unchanged. In Marlow, a farming town, employment in the same sector rose by 2 per cent. In Dunmore, a mining town with few small employers, employment did not change but the number of job advertisements fell by 15 per cent. The researchers noted that Eastbrook lost visitors during the second year because of a road closure. A columnist wrote that the study 'proves a wage rise costs jobs'.
Answer and explanation
Correct answer: A. Marlow
- Step 1: Marlow rose by 2 per cent. Step 2. Eastbrook fell by 4 per cent and Dunmore did not change. Answer: Marlow. Why not the others: the other towns fell or stayed the same.
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