The UK is facing a jobs recession. Unemployment has rocketed to 4.7%, the highest in four years, and businesses are in retreat, rowing back on investment in the face of higher employment costs and a lack of economic confidence.
The number of job vacancies has declined for the last 37 consecutive quarters.
If the country is serious about growth – once its number one priority – then the absolute foundation for that is jobs.
More people in work boosts tax receipts and national productivity, cuts welfare costs and provides opportunities for millions to improve their wages and standard of living.
But while some public sectors like education, social and civil services have seen job vacancies rise, it is the private sector which is the real engine room for economic growth and that’s spluttering.
That’s why I’m urging the Chancellor to deliver a pro-jobs budget in November.
Warning: Lee Biggins, chief exec and founder of jobs website CV-library, is urging the Chancellor to deliver a pro-jobs budget in November
As the CEO of one of the UK’s largest job boards, I see first-hand the worrying situation the country is in.
Any job seeker knows that it’s really tough out there with far fewer vacancies and hundreds of applicants fighting for every job.
There is now an average of 2.3 unemployed people for every vacancy – the highest level since COVID.
There are nearly a million young people not in employment, education or training (NEETs), and millions more on long-term sick leave.
Welfare costs are ballooning and while we keep hearing of policies aimed at getting people back to work, they have no chance of working unless there are enough jobs available. Right now, there simply aren’t because businesses are not hiring or growing.
The employer National Insurance tax hike was a significant and punitive move. Its tax on jobs, unrelated to business success, added millions to the bottom line.
At the same time, the proposed Employment Rights Bill risks swinging the pendulum too far, making recruitment riskier for employers.
We back the calls from CBI, FSB, British Chambers of Commerce to find the right balance between employee protection and making it costlier and riskier for businesses to hire.
And that’s before we factor in the impact of AI. Major firms, including the Big Four accountancy giants, all announced cuts to graduate intakes as AI replaces entry-level roles.
In a growth economy, AI could fuel innovation and productivity, but right now it’s being used to reduce headcount and cut costs.
We’re on the verge of a jobs crisis and that is why a pro-jobs budget is vital.
We need to restore business optimism, incentivise job creation and create the right environment for private investment across every sector of the economy.
The government needs to set itself five clear principles for its Autumn budget:
- Stop heaping the tax burden on the shoulders of British businesses.
- Cut unnecessary hiring and compliance red tape to free up business investment and reduce the time and cost of creating jobs.
- Give targeted tax relief and hiring incentives to reward employers who create new, productive jobs — especially SMEs and high-growth sectors.
- De-risk recruitment by creating a balanced Employment Rights framework that gives businesses confidence to hire while providing workers with clear, fair protections.
- Incentivise private investment in job-rich sectors, such as construction and hospitality, with a predictable, growth-related tax framework.
Most people want to work hard and find purpose in their careers. Most businesses want to grow and invest in people, not just technology.
The Autumn Budget must unlock this potential with policies that deliver a jobs boom.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
#steps #Labour #Britain #working #recruitment #boss #LEE #BIGGINS
