Employers ‘immediately reacted’ to fall budget with job cuts, data suggests

Bosses appeared to “immediately react” to the Chancellor’s Autumn Budget by cutting staff, data from Employment Hero’s SmartMatch Salary Report suggests.

Rachel Reeves’ £25bn National Insurance raid on employers has been criticized by some businesses, which will pay 1.2 per cent more per employee from April.

British businesses will also face an increase in the national minimum wage.

Full-time employment contracted 1.2 percent in November, according to Employment Hero’s survey of 90,000 employees, with younger workers hardest hit.

The human resources software firm said there were 4.8 percent fewer people aged 18 to 24 working full-time last month compared to October, in contrast to a 0.5 percent monthly decline for people from 35 to 44 years old.

This follows data from the Bank of England on Thursday which found that 54 per cent of businesses are likely to employ fewer staff, as well as increase prices, in response to the Autumn Budget.

The bank’s figures also revealed that 38 per cent would pay lower wages and 59 per cent would accept some of the impact in the form of lower profits.

Employment Hero data showed a 0.1 per cent decline across all employment types and age groups, although this was likely cushioned by seasonal hiring, as part-time employment rose 0.3 per cent.

Employment Hero UK CEO Kevin Fitzgerald said: “These figures show that the disastrous decision to tax employment is already costing jobs.”

‘The 4.8 per cent drop in full-time employment among 18- to 24-year-olds is especially worrying as it indicates that employers are failing to recruit new talent into their organisations.

‘We are seeing these job cuts months before the NIC increase comes into effect, suggesting businesses are taking preventive measures to protect their bottom lines.

‘While some workers may move into part-time jobs, this is not a sustainable solution for the UK economy.

“The Government needs to seriously reconsider this policy before it causes lasting damage to employment, particularly for young people entering the workforce.”