"The labour market continues to present a gloomy picture. While not as bad as some have feared, most of the important indicators are negative. Employment and vacancies are slightly down, inactivity remains a problem, and unemployment is up again. One particular issue is entirely predictable. The hike in employer national insurance contributions, plus the Employment Rights Bill threatening to bring in unfair dismissal from day one and the clampdown on zero hours contracts, all mean that employers are extremely wary of taking on untried"
"When the shrinking demand for graduates is coupled with near-record numbers with degrees and higher degrees, even well-qualified young people find it hard to get work. So it is not surprising that unemployment is rising fastest amongst young people, a worrying development as it is easy for early unemployment to slip into inactivity and permanent welfare dependence. Although the data refer to a slightly earlier period, self-employment appears again to have drifted back and remains below the pre-Covid level."
The labour market shows deteriorating indicators: employment and vacancies have declined slightly, inactivity remains high, and unemployment has increased. Employer costs and regulatory changes have reduced willingness to hire untested entrants. Higher employer national insurance, potential unfair dismissal rules from day one, and limits on zero-hours contracts discourage employers. A surplus of graduates amid falling demand leaves many well-qualified young people struggling to find work, pushing youth unemployment higher and risking long-term inactivity. Self-employment has fallen below pre-Covid levels as IR35 and Making Tax Digital requirements make solo work less attractive. Policy should be more pragmatic and less ideologically driven.
Read at London Business News | Londonlovesbusiness.com
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