Analyzing the effect of Minimum wage on Employment situation: A case study of small-scale businesses in Lusaka district

The Impact of Minimum Wage Policies on Employment has been a subject of debate globally, yielding diverse outcomes across regions and sectors. In Zambia, particularly in Lusaka City, the Retail Sector constitutes a significant part of the local economy. Small-Scale Businesses, as a vital segment of this sector, encounter unique Challenges and Opportunities under Minimum Wage Regulations. Understanding the specific Effects on their Employment Situation is essential for shaping Policy Decisions and enhancing Economic Outcomes. This Study aims to investigate the Effects of Minimum Wage Adjustments on the Employment Situation of Small-Scale Businesses in Lusaka District. The Objectives include: to Analyze the Effects of Minimum Wage Adjustment on Employment Levels in Lusaka District, to Examine Small-Scale Employers’ Reactions to Minimum Wage Adjustments in Lusaka District, and to Identify the Limitations Faced by Small-Scale Employers in Complying with Minimum Wage Laws. The Research employs a Mixed-Methods Approach, integrating Quantitative and Qualitative Data. A Survey will be conducted among Small-Scale Businesses across various parts of Lusaka City to collect Primary Data on Employment Levels, Working Hours, and Business Performance. This will be supplemented by In-Depth Interviews to gather Qualitative Insights into Small-Scale Employers’ Experiences and Perceptions. Additionally, Secondary Data from Government and Industry Reports will be analyzed to provide Contextual Background and corroborate Findings. The Study is expected to uncover a nuanced Impact of Minimum Wage Increases on Small-Scale Business Employment in Lusaka City. While some Businesses may respond by Reducing Staff or Cutting Working Hours to mitigate Increased Labor Costs, others might Adapt through Price Adjustments or Productivity Enhancements. The Findings will hold significant Implications for Policymakers, offering Strategies to Balance Fair Wages with Sustainable Employment Levels. This Research seeks to contribute to the broader Discourse on Labor Economics in Developing Countries, delivering actionable Insights for Zambia and similar Economies.