Increase in Unemployment
Firstly, the presence of a minimum wage might lead to some firms having to cut down on their number of employees should they be unable to pass on the higher costs of wages to consumers, which occurs especially when the type of good or service is price elastic in demand. As such,
Secondly, a greater number of people willing to work with a minimum wage in place, but the efficiency of the market is limited by the available job spaces. Thus, lower-skilled workers will face even greater problems than before where they are excluded from the workforce entirely.