The Chancellor has been warned by economists that the labour market is under “threat” amid her changes in the Autumn Budget.
Rachel Reeves has been told to “scrap her misguided jobs tax” as fresh figures out on Tuesday shows there is growing pressure on the UK’s labour market as there are clear warnings of significant job losses as unemployment is rising.
The Office for National Statistics (ONS) shows that unemployment has risen by 4.4% which is the steepest decline since the pandemic.
Daisy Cooper MP, Liberal Democrat Treasury spokesperson said, “These latest figures are concerning. The Government’s misguided jobs tax is already scaring off small businesses from hiring new people and being able to better serve our communities.
“The Chancellor talks about growth, but her Budget measures are acting as an anchor against just that.”
Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said, “The labour market continues to be challenging for many businesses, with wage growth continuing to rise as firms compete for skilled workers.
This is a concern as they face a significant rise in employment costs in April.
“To grow the economy, we need businesses and the workforce to thrive. Government must ease the cost-pressures on firms so they can invest in people.
Andrew Goodwin, chief UK economist at Oxford Economics warned that the employees national insurance contributions increase and the minimum wage rising poses a “major threat” to the jobs market and low paid employees will “disproportionately feel the squeeze from these policy changes.”
He warned, “Given these sectors are typically also the most labour-intensive, this raises the risk of significant job losses, potentially pushing up unemployment in 2025.
