Despite a slight rise in payrolled employees, the ongoing decline in job vacancies and rising unemployment rate highlight weak business hiring intentions driven by the Government’s employment reforms.
Our data reveals that nearly half (47%) of business leaders facing increased National Insurance costs plan to reduce employment in response. Hiring intentions for the year ahead remain at levels last seen during the peak of the COVID-19 pandemic.
The Government missed an opportunity at the Report Stage of the Employment Rights Bill to demonstrate responsiveness to business concerns and mitigate the risk of these reforms harming employment prospects.
While the Better Regulation Action Plan signals a positive shift in narrative, its credibility depends on applying these principles to upcoming employment regulations, ensuring they do not impose excessive costs and constraints on businesses.
info obtained here
