Survey finds half of businesses expect to make cutbacks or redundancies in 2026

Figures compiled following recent minimum wage meeting

A survey of over 90 Manx businesses found more than half believe they'll have to make cutbacks or redundancies next year.

The data has been compiled by the Local Economy Forum following a public meeting to discuss the upcoming increase to the minimum wage.

The businesses, which have a combined workforce of 3,800 people, were asked to assess the impact the minimum wage rise will have on their survival, operating hours, employment levels, investment and training.

While some businesses reported they're already experiencing difficulties, the forum found that's severely heightened by the new rate.

One business reported a high risk of failure in 2025, but that jumped to 14 respondents when taking the 2026 minimum wage into account.

Fifty seven percent said there would be a high or severe risk of cutbacks or redundancies when the new rate comes in, compared to 15 percent today, while 70 percent reported planned cutbacks in investment and youth employment.

Forum secretary Brett Martin said: "The result is plain to see in the results of the survey, particularly with a triple-inflation increase in minimum wage coming down the line."

The minimum wage will increase from £12.25 to £13.46 in April after being approved by Tynwald last month.