
Commenting on this morning’s release of ONS labour market data, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“The small decreases in the number of payrolled employees and vacancies point to a concerning trend of employer caution regarding hiring staff.
“The combination of measures in the Employment Rights Bill and the large increase in employers’ National Insurance contributions is taking a serious toll on employers’ hiring intentions. The cumulative effect of these changes will ultimately be to stifle job creation.
“For the first since October 2020, IoD data shows a higher percentage of business leaders are expecting to reduce their headcount (28%) in the coming year than are expecting to increase it (24%).
“If the government is to meet its objectives of an 80% employment rate and boosting economic growth, it needs to urgently address business’ concerns about the increased risks and costs associated with employing staff.”