UK Job Market Struggles Amid Tax Hikes: Hiring Crisis Deepens

[Social Media]

 

The UK’s employment landscape is faltering as Chancellor Rachel Reeves' tax-raising Budget delivers a heavy blow to businesses and jobseekers alike. The latest figures reveal that hiring activity has slowed at its most severe rate since the pandemic, casting a shadow over the nation's economic outlook.  

 

A report from the Recruitment & Employment Confederation (REC) and KPMG shows that demand for staff in November experienced its sharpest decline since August 2020. Permanent roles have been hit the hardest, with recruitment in this sector almost at a standstill. This slowdown comes as businesses brace for an impending increase in National Insurance contributions, set to take effect in April next year.  

 

Adding to the woes is a rise in redundancies, which has driven more people into the job market, intensifying competition for fewer opportunities. Neil Carberry, chief executive of REC, attributed the slowdown to economic uncertainties stemming from Reeves’ Budget, stating, “It should be a surprise to no one that firms took the time to reassess their hiring needs in November after a tough Budget for employers. The drop in vacancies was led by private sector permanent roles, and slower permanent recruitment billings across the month also reflected this trend.” He emphasized the critical question of whether businesses would regain confidence in the coming year.  

 

The backlash against Reeves' fiscal policies has been swift and strong, particularly from business leaders. The Budget includes a rise in employer National Insurance contributions from 13.8% to 15%, coupled with a significant reduction in the earnings threshold for workers—from £9,100 to £5,000. While these measures are projected to generate £25 billion for the Treasury, critics argue they will stifle growth and exacerbate existing challenges for businesses already grappling with inflation and rising operational costs.  

 

The policies have been widely criticized as a threat to economic stability. Reeves has been accused of “milking” businesses to fund Labour's spending priorities, with many warning of the potential to discourage investment and hinder job creation. Employers are increasingly cautious about long-term hiring commitments, leaving jobseekers facing one of the bleakest employment landscapes in years.  

 

The ongoing uncertainty highlights the broader consequences of Labour’s tax strategy. Businesses, caught between rising costs and diminished hiring capabilities, must navigate an increasingly precarious environment. For jobseekers, the combination of reduced opportunities and heightened competition underscores the significant challenges ahead as the UK prepares for another economically turbulent year.

 

Based on a report by Daily Telegraph 2024-12-11

 

 

 

[ukrules]

Well they all voted for this, no going back for 5 full years.

 

They're really going to get what they voted for here, and I hope they choke on it 🤣

[James105]

2 hours ago, ukrules said:

Well they all voted for this, no going back for 5 full years.

 

They're really going to get what they voted for here, and I hope they choke on it 🤣

 

Well, 20% of the electorate voted for it.  It's the 80% that did not vote for this I have some sympathy for as the damage could be irreparable in just a single term of this clown show, especially when they inevitably start to double down on their mistakes like gamblers chasing their losses.  

[Will B Good]

4 hours ago, Social Media said:

Based on a report by Daily Telegraph 2024-12-11

 

[JonnyF]

4 hours ago, Social Media said:

The backlash against Reeves' fiscal policies has been swift and strong, particularly from business leaders. The Budget includes a rise in employer National Insurance contributions from 13.8% to 15%,

 

Well blow me down with a feather. 

 

Who could have imagined that raising the cost of employing people would result in fewer people being employed?

 

I guess this area wasn't covered during Rachel's 2 day orientation for the customer services department. 

[herfiehandbag]

Oh dear, the girl from accounts has cocked it up!

[RichardColeman]

Ah, if only they had not paid off their union masters and created yet another black financial hole, they maybe would have had no need to do this. 

[Will B Good]

1 minute ago, RichardColeman said:

Ah, if only they had not paid off their union masters and created yet another black financial hole, they maybe would have had no need to do this. 

 

Did macroeconomics a long, long time ago.....but how are those two related? 

[James105]

1 hour ago, Will B Good said:

 

Did macroeconomics a long, long time ago.....but how are those two related? 

 

Because Labour are moronic clowns they spent £10bn on giving public sector pay rises, and asked for nothing in return so those pay rises costs £10bn, or a "£10bn black hole" if you will.  A more savvy negotiator (average 6th form student for example) might have asked for productivity improvements in return, so the pay rise could end up paying for itself and cost nothing.    So now they have £10bn shortfall to make up.    

[mokwit]

11 hours ago, Social Media said:

A report from the Recruitment & Employment Confederation (REC) and KPMG shows that demand for staff in November experienced its sharpest decline since August 2020. Permanent roles have been hit the hardest, with recruitment in this sector almost at a standstill.

Paging @Chomper Higgot

[Chomper Higgot]

Just now, mokwit said:

Paging @Chomper Higgot

And?

 

[mokwit]

Are you not going to tell us one more how increasing National Insurance paid by businesses and other measures will have no effect as they can afford it?

 

Are you not going to rush to tell us once more of the bright economic outlook under Labour?

[mokwit]

< @Chomper Higgot has fled the chat>

[Will B Good]

7 hours ago, James105 said:

 

Well, 20% of the electorate voted for it.  It's the 80% that did not vote for this I have some sympathy for as the damage could be irreparable in just a single term of this clown show, especially when they inevitably start to double down on their mistakes like gamblers chasing their losses.  

 

bit like the Brexit vote....

 

• 17.4 million voted Leave.

• 16.1 million voted Remain.

• 12.9 million eligible voters did not vote at all

 

29 million did not vote for Brexit.

[Nick Carter icp]

9 minutes ago, mokwit said:

Paging @Chomper Higgot

 

   It will be the Daily Telegraphs fault for reporting it and it will also be Brexits fault 

[mokwit]

Just now, Nick Carter icp said:

 

   It will be the Daily Telegraphs fault for reporting it and it will also be Brexits fault 

14 years of Tory rule.

[Chomper Higgot]

19 minutes ago, mokwit said:

Are you not going to tell us one more how increasing National Insurance paid by businesses and other measures will have no effect as they can afford it?

 

Are you not going to rush to tell us once more of the bright economic outlook under Labour?

I’m not going to tell you correlation is causation.

 

 

[mokwit]

3 minutes ago, Chomper Higgot said:

I’m not going to tell you correlation is causation.

 

 

Can anyone help me out, can't see the Leftie Weasel below.

[mokwit]

7 hours ago, JonnyF said:

 

I guess this area wasn't covered during Rachel's 2 day orientation for the customer services department. 

Hopefully she has plenty of experience of dealing with complaints - she is going to need it.

[ukrules]

7 hours ago, James105 said:

Well, 20% of the electorate voted for it.  It's the 80% that did not vote for this I have some sympathy for

 

They get zero sympathy from me.

They couldn't be bothered to vote and this is what you end up with so they are the ONLY reason this government became elected = it's all on them and they're going to reap the rewards for years to come with nobody else to blame.
 

[herfiehandbag]

3 hours ago, mokwit said:

Can anyone help me out, can't see the Leftie Weasel below.

It is the one in the middle, surely?

[mokwit]

Yellow bellied? That could be it.

[superal]

20 hours ago, James105 said:

 

Because Labour are moronic clowns they spent £10bn on giving public sector pay rises, and asked for nothing in return so those pay rises costs £10bn, or a "£10bn black hole" if you will.  A more savvy negotiator (average 6th form student for example) might have asked for productivity improvements in return, so the pay rise could end up paying for itself and cost nothing.    So now they have £10bn shortfall to make up.    

Are you sure ?  The announcement yesterday was 2.8% rise for public sector workers which is not keeping up with inflation and if a rise of 5.5% ( pay review bodies recommendation ) was given it would cost 10 billion pounds . Teachers & NHS unions have intimated that industrial action may well happen .

Starmer said that pay reviews above inflation would have to be met with productivity improvements . So I am supposing that the train drivers did just that ? 

A national strike to call for a new election could happen and the Reform Party will walk it . The last Tory governments under performed but this Labour gang of muppets are taking the UK to the brink of ruination and no return . Still the rubber boats arrive and that figure exceeds 20,000 illegals in the 5 months of this pathetic , so called government . 

Italy is now deporting every illegal immigrant with no delays . Bravo , I say and scrap the ECHR . The UK current economic woes are unsustainable .