UK Employment Hits 14 Year Low
New statistics indicate a decline in the UK labour market, reaching its lowest point since 2011. Many companies in key sectors are currently not hiring.
New statistics indicate a decline in the UK labour market, reaching its lowest point since 2011. Many companies in key sectors are currently not hiring.
The increased cost of employment, coupled with uncertainty surrounding the budget , has resulted in employment rates hitting a 14-year low.
Data from BDO’s Employment Index highlights declines in hiring, job losses, and unemployment based on various surveys. Additional reports from KPMG and the Recruitment & Employment Confederation (REC) corroborate these findings, noting a 16-month low in full-time job offerings prior to the budget announcement.
All 10 sectors surveyed experienced a reduction in job offers, with construction and retail facing the most significant decreases.
Chancellor Rachel Reeves’ budget, which increased employer National Insurance and raised the minimum wage, has heightened the cost of hiring staff. This has led to reduced hiring as businesses attempt to manage expenses.
New statistics indicate a decline in the UK labour market, reaching its lowest point since 2011.
BDO has reported that output and employment levels have reached their lowest since the financial crisis.
While permanent roles have decreased, businesses are increasingly relying on temporary workers. Reports from KPMG and REC show a rise in temporary job roles, indicating a focus on short-term operational needs over long-term employment.
The number of young people not in education, employment, or training (NEET) has risen to one million, a 26% increase since the pandemic. In response, the government has pledged £725 million to create 55,000 apprenticeships, although opportunities for these positions remain limited.
Approximately five million people are currently receiving out-of-work benefits, nearly double the pre-pandemic level, resulting in 1.5 million children living in workless households. The income disparity between benefits and working wages poses a challenge to incentivizing employment.
The UK is experiencing significant employment challenges, characterized by high employer costs and increasing dependence on benefits. Despite government efforts to promote apprenticeships and employment, the lack of business capacity to hire and the benefits system's current structure create ongoing obstacles.
Based on reporting by techround.co.uk.