According to the latest business survey, the company is hiring new employees and rising economic outlook and wage bills will brake on the introduction.
Amid the signs of weakening the UK labour market, KPMG consulting firms and the Trade Organization Recruitment and Employment Federation (REC) said that in February, the number of people in permanent and temporary roles fell significantly, although hiring hiring fell slower than in January.
This is a separate survey that unemployment is rising as businesses prepare for labor costs in April, dragging the employment index from business consulting and accounting firm BDO to levels that have not been seen since the global financial crisis. Business optimism failed for the fifth consecutive time.
KPMG and REC monthly employment reports highlighted weaker demand for workers in the company, as overall vacancies fell further in February.
The report found that more and more workers were losing jobs, increasing the number of job seekers and maintaining the blocks of overall pay pressure. Starting wages rose at the weakest rate in four years.
Prime Minister Rachel Reeves’ plan to employer state insurance contributions increased by £2.5 billion, with a 6.7% increase in minimum wages to take effect from April.
“After a long winter, as we enter the spring, there is some shift in the labor market. This is led by the private sector – despite the recent tax increases – and should not be missed.”
Carberry called on Reeves to build confidence in Britain’s economic growth in his spring statement to Parliament on March 26.
“But now, however, with the significant cost in April, as the company changes in national insurance and national living wages, it’s still slow when it holds its breath,” Carbury said.
Business leaders have previously warned that Reeves’ fall budget has increased economic headwinds, believing that £2.5 billion from employers’ national insurance contributions would force them to lay off employees or raise prices.
Jon Holt, group CEO and senior partner in the UK, said many companies continue to “wait for the recruitment method.”
He added that the hiring decline in February was large, “probably suggesting that expectations for further lower interest rates and more than expected recent economic data began to release some business pressure”.
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The same lack of confidence was the struggle against Covid Lockdown in January 2021, BDO said.
BDO’s “Monthly Business Trends” report found that UK business output has declined for the second consecutive month, indicating a slowdown in overall UK economic activity despite the resilience of the service sector.
The weather was unusually warm in February, and the continued shift in consumer spending from goods to services was a pandemic, which are two possible reasons for the relative strength of the service sector.
However, BDO said the overall slowdown in UK economic activity is expected to continue for the rest of the year.
