Impact of minimum wage increase unemployment problems in Tanzania private sector: a case study of fishing industries in Mwanza.

The main objective of this study was to assess the impacts of increasing Minimum wage on unemployment Problems in Tanzania private Sector, A case Study of Fishing Industries in Mwanza. A total of 80 respondents from these selected fishing industries in Mwanza were sampled. These industries were Viet fish, Nile perch and TFP. This study was case study based on both qualitative and quantitative methods of data analysis. Statistical Sciences (SPSS) programme aided to quantify data obtained from the field of the study Simple linear regression model was used to test the relationships between minimum wage increase and the level of employment. It was found that minimum wage increase causes unemployment among youths because of having low experience and education. Other effects include an increase in prices of goods and services, and deterioration of non wage benefits. In three surveyed sampled, large percentage of workers were casually employed despite the long period of working with those industries. It is recommended that in setting minimum wages various stakeholders have to be involved. These stakeholders include workers’ associations, Employees’ Trade Unions, professionals, different institutions and departments. It is also recommended that wages should be set according to social and economic criteria such needs of workers and their families’ cost of living or inflation, general level of wages, levels of social security benefits, capacity of enterprise to pay, employment and productivity.