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Yahoo
2 days ago
- Business
- Yahoo
Graduate roles plummet as Reeves's job tax bites
Graduate job openings have plummeted by more than 20pc as Rachel Reeves's tax raid prompts businesses to cut back hiring for entry level positions. New figures from recruitment platform Adzuna show graduate job listings have plunged 22.8 pc in the year to April. Companies have slashed recruitment in an attempt to make savings following the Chancellor's autumn Budget, which increased employment costs from last month. The rate of employers' National Insurance increased, while the threshold at which it is paid was lowered. Graduates are bearing the brunt of Ms Reeves's tax raid. On a monthly basis, vacancies for graduate roles fell by 7.6pc in April, following a 17.3pc drop in March. The sharp decline in entry-level jobs comes amid growing questions over the value of university degrees, particularly as graduate schemes now offer salaries only in line with the minimum wage. The National Living Wage climbed 6.7pc to £12.21 per hour in April, meaning a full-time worker on the UK's lowest salary now earns the equivalent of £25,500 annually. Growth in the minimum wage has outpaced average pay across the economy and one in four jobs advertised to graduates on jobs platform Indeed now pays minimum wage or only scarcely higher. The figures reveal that university leavers are faced with one of the most challenging labour markets in years. Even the professional services and accounting sector, which has long been one of the biggest graduate employers in the country, has recorded a decline in recruitment. Earlier this year PwC froze hiring for one of its apprenticeship schemes and abandoned its practice of offering permanent positions to staff who graduated from it. In a bid to reduce headcounts KPMG, Deloitte, EY and PwC have all cut back on hiring graduates, school leavers and apprentices. Adzuna's figures show that vacancies across the economy declined by 0.95pc in April to 862,876. Andrew Hunter, co-founder of Adzuna, said: 'After signs of recovery in March, April brought a reminder that this remains a delicate job market. Vacancies dipped and salary growth, while still strong on an annual basis, is starting to show signs of slowing.' Figures released by the Office for National Statistics earlier this month revealed that the number of jobs advertised across the country fell to 761,000 in the three months to April, down from 804,000 for the previous three-month period. It marks the worst jobs market since January 2017, excluding the pandemic. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
3 days ago
- Business
- Yahoo
Graduate roles plummet as Reeves's job tax bites
Graduate job openings have plummeted by more than 20pc as Rachel Reeves's tax raid prompts businesses to cut back hiring for entry level positions. New figures from recruitment platform Adzuna show graduate job listings have plunged 22.8 pc in the year to April. Companies have slashed recruitment in a bid to make savings following the Chancellor's Autumn Budget, which increased employment costs from last month. The rate of employers' National Insurance increased, while the threshold at which it is paid was lowered. Graduates are bearing the brunt of Ms Reeves's tax raid. On a monthly basis, vacancies for graduate roles fell by 7.6pc in April, following a 17.3pc drop in March. The sharp decline in entry level jobs comes amid growing questions over the value of university degrees, particularly as graduate schemes now offer salaries only in line with the minimum wage. The National Living Wage climbed 6.7pc to £12.21 per hour in April, meaning a full-time worker on the UK's lowest salary now earns the equivalent of £25,500 annually. Growth in the minimum wage has outpaced average pay across the economy and one in four jobs advertised to graduates on jobs platform Indeed now pays minimum wage or only scarcely higher. The figures reveal that university leavers are faced with one of the most challenging labour markets in years. Even the professional services and accounting sector, which has long been one of the biggest graduate employers in the country, has recorded a decline in recruitment. Earlier this year PwC froze hiring for one of its apprenticeship schemes and abandoned its practice of offering permanent positions to staff who graduated from it. In a bid to reduce headcounts KPMG, Deloitte, EY and PwC have all cut back on hiring graduates, school leavers and apprentices. Adzuna's figures show that vacancies across the economy declined by 0.95pc in April to 862,876. Andrew Hunter, co-founder of Adzuna, said: 'After signs of recovery in March, April brought a reminder that this remains a delicate job market. Vacancies dipped and salary growth, while still strong on an annual basis, is starting to show signs of slowing.' Figures released by the Office for National Statistics (ONS) earlier this month revealed that the number of jobs advertised across the country fell to 761,000 in the three months to April, down from 804,000 for the previous three-month period. It marks the worst jobs market since January 2017, excluding the pandemic. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
