The rise in the UK minimum wage has coincided with a sharp increase in British businesses moving roles offshore, according to London-based offshoring firm The Legends Agency.
The firm, which helps UK companies hire remote teams in South Africa, recorded a 300% increase in offshored roles in April 2026, compared with the same month last year, following the introduction of the latest minimum wage increase.
The strongest demand for offshore hiring is currently in sales and business development, which accounts for 21% of roles, followed by customer support at 12%, administration and executive assistance at 10%, design at 9%, marketing at 7%, finance and accounting at 7%, and technology and engineering at 6%.
The Legends Agency says it is also seeing increased interest from sectors not traditionally associated with offshoring, including legal services, healthcare, and back office construction and hospitality roles.
The firm supports UK businesses with hiring remote teams in South Africa, where salaries and the cost of living are significantly lower, helping companies save close to 50% on employment costs. Its clients range from multinationals to small startups.
The warning comes as the UK unemployment rate stands at 4.9%, with unemployment among young people aged 16 to 24 at 15.8%.
Meanwhile, a new report by Alan Milburn launched today finds the number of NEETs in the UK could hit 1.25m by the early 2030s.
Group CEO of The Legends Agency, Alex Fenton said:
“While I welcome the minimum wage hike, ministers also need to be honest about the pressure it adds to employers already dealing with higher National Insurance, weak growth and AI-driven disruption.”
“The danger is that the very roles young people rely on to get a foot on the career ladder — in sales, customer service, admin, marketing and finance — are the roles most likely to move overseas.
“If the Government wants better-paid jobs in Britain, it also has to make it easier and more affordable for businesses to create those jobs here.”
