The Chancellor is facing recession warnings as economic policies, particularly a significant hike in employers' national insurance contributions and an increase in minimum wage, threaten the jobs market. Rachel Reeves' push for a 6.7% rise in the National Living Wage is compounded by James Reed's concerns, indicating a notable decline in job vacancies by 22% in January. Reed likens the economic downturn to a 'slow-motion car crash' and highlights the severe financial strain on businesses, where increased payroll costs could lead to job losses and reduced hiring.
We're seeing a worsening situation in the labour market, and our vacancy numbers for January were down 22%.
I have described this situation previously as like a slow-motion car crash. Unfortunately, it is accelerating as vacancies continue to decline.
This pressure on businesses is resulting in good people losing their jobs, good companies rowing back on their plans, or having to reduce recruitment.
The centrepiece of the Budget was this £25 billion increase in National Insurance, which is a tax on jobs.
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