Firms slash jobs at quickest rate in four years following budget tax hikes

Businesses are shedding jobs at the fastest pace in four years, driven by higher employment costs and uncertainties stemming from recent budget changes, especially national insurance hikes.

The decline in headcount is the sharpest in over 15 years when pandemic-era figures are excluded, with almost 25% of firms either laying off workers or freezing hiring.

Economist Thomas Pugh suggests that the dip in private sector job creation serves as a clear indicator of how companies respond to rising labor costs by reducing recruitment.

While the PMI's services index improved slightly, it still fell short of expectations, illustrating the ongoing challenges businesses face amid economic uncertainties.

Read at Business Matters