Home Money Increase in minimum wage causes a decrease in summer jobs

Increase in minimum wage causes a decrease in summer jobs

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Do not hire: The Recruitment and Employment Confederation noted that many companies were experiencing a
  • Job openings for chefs fell by about a third, according to REC
  • The national living wage for 21-year-olds rose 9.8% to £11.44 an hour in April

A major trade body has warned that the new national minimum wage is leading to fewer vacancies for summer jobs.

The Recruitment and Employment Confederation said there was a “dramatic drop in demand” for seasonal staff in April and May – when summer staff traditionally queue – compared to the same period last year.

Job openings for chefs and theme park and leisure attendants fell by around a third, while they were 38.1 percent lower for restaurant and catering managers and 44.5 percent lower for hotel managers and owners.

Don’t hire: The Recruitment and Employment Confederation said many businesses were experiencing a “dramatic drop in demand” for seasonal staff over the summer.

The organization also said there had been a “sharp” drop in vacancies for critical tourism and events roles in all UK regions except Wales, Northern Ireland and the North East of England.

He believes this may be due to political uncertainty, the stagnation of the UK economy last month and the increase in the UK minimum wage.

Employees aged 21 and over are entitled to the National Living Wage, which rose 9.8 per cent to £11.44 an hour in April and was previously only available to those who were at least 23 years old.

At the same time, the minimum wage for 18- to 20-year-olds rose by 14.8 per cent to £8.60 per hour and for 16- and 17-year-olds by 21.2 per cent to £6.40 per hour. .

Neil Carberry, REC chief executive, said: ‘A second major rise in the national minimum wage has hit hiring levels in key sectors. We can see some evidence of that drag in the lower summer seasonal hiring demand we reported today.

“Reducing hours or roles while opening for shorter periods are decisions businesses may be forced to make during difficult times.”

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His warning came alongside REC figures showing the volume of active job adverts remained above 1.7 million in May, a 0.7 per cent decline from the previous month, as the UK labor market The United Kingdom continued to cool amid high interest rates.

Among the professions that saw a decline in positions were probation officers, data entry administrators, and nannies and au pairs.

A drop in active postings disproportionately affected London, as demand for both permanent vacancies and temporary workers deteriorated in the UK capital.

Half of the ten local authorities that recorded the biggest falls were in London, with Tower Hamlets accounting for the biggest fall of any area in the country.

However, the borough of Bromley enjoyed one of the largest percentage increases in job advertisements (14.1 per cent), with only Ards and North Down in Northern Ireland and Conwy and Denbighshire in Wales experiencing larger increases.

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