Latest news with #NyeCominetti
The Independent
3 days ago
- Business
- The Independent
Job searching has become a lot more competitive
A new survey by KPMG and REC reveals that the number of jobseekers in the UK has reached its highest point since 2020, with candidate availability increasing at the fastest rate in over four years. The survey, based on data from 400 recruitment agencies, indicates a reduction in recruitment activity by companies in May, with permanent placements decreasing. Redundancies and fewer job opportunities are cited as contributing factors to the increase in jobseekers. Despite a slowdown in wage growth to 5.6 per cent in the three months to March, wages continue to outpace inflation, rising 2.6 per cent when adjusted for the Consumer Prices Index. Experts, like Nye Cominetti from the Resolution Foundation, express concern over the figures, attributing the situation to recent tax policies, such as the rise in employer National Insurance.
Yahoo
31-03-2025
- Business
- Yahoo
Reeves's minimum wage rise and tax raid ‘to cost 85,000 jobs'
Rachel Reeves's raid on businesses will lead to the loss of 85,000 jobs, economists have warned, mostly affecting Britain's lowest-paid workers. The Resolution Foundation warned of potential redundancies ahead of the increase in employer National Insurance contributions (NICs) and the minimum wage, which the think tank claims will drive up the cost of employing a part-time low-paid worker by 14pc – the biggest jump on record. Given the scale of the increase, the Left-leaning think tank predicts that employers will have to fire staff, reduce hiring or trim hours to cope with higher costs. Nye Cominetti, an economist at the Resolution Foundation, said: 'We find an employment effect of 85,000 in terms of average-hours jobs. It is a substantial number. Most of that employment effect is concentrated among low-earners.' While companies employing higher-paid workers can pass on increased National Insurance (NI) costs through lower wages, this is not an option for bosses whose staff are on the minimum wage. It comes as the minimum wage is set to rise by 6.7pc to £12.21 per hour on April 1, while the Chancellor's £25bn National Insurance raid will kick in on Sunday. The latter will mean that employers' NI rates will rise from 13.8pc to 15pc, while the threshold at which they start paying the levy will also fall from £9,000 to £5,000. The latest warning from the Resolution Foundation, previously headed by Torsten Bell, who is now a Labour MP, has been made less than a week after Ms Reeves's Spring Statement – which revealed a £14bn hole in her October Budget spending plans. The looming £25bn NI increase is including in the £36bn in Labour tax increases which come into force in the first week of April. Louise Hellem, the chief economist at the Confederation of British Industry, said the decision to increase both NI and the minimum wage will inflict further harm on businesses. She also highlighted how the upcoming increase in the minimum wage comes after an increase of nearly 10pc last year. She said: 'For those who benefit, it is obviously incredibly positive. But those are huge increases in the cost of employment. 'Those increases over the last few years added about £8bn to employers' wage bills. If you put that together with NICs it is about £12bn, so that is about £20bn before you even do the interaction between the two.' Ms Hellem also raised concerns over Angela Rayner's looming workers' rights overhaul. She said: 'Coming down the road is the Employment Rights Bill, which the Government's own estimation suggests will cost a further £5bn. So those are all quite chunky numbers.' 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. Sign in to access your portfolio
Telegraph
31-03-2025
- Business
- Telegraph
Reeves's minimum wage rise and tax raid ‘to cost 85,000 jobs'
Rachel Reeves's raid on businesses will lead to the loss of 85,000 jobs, economists have warned, mostly affecting Britain's lowest-paid workers. The Resolution Foundation warned of potential redundancies ahead of the increase in employer National Insurance contributions (NICs) and the minimum wage, which the think tank claims will drive up the cost of employing a part-time low-paid worker by 14pc – the biggest jump on record. Given the scale of the increase, the Left-leaning think tank predicts that employers will have to fire staff, reduce hiring or trim hours to cope with higher costs. Nye Cominetti, an economist at the Resolution Foundation, said: 'We find an employment effect of 85,000 in terms of average-hours jobs. It is a substantial number. Most of that employment effect is concentrated among low-earners.' While companies employing higher-paid workers can pass on increased National Insurance (NI) costs through lower wages, this is not an option for bosses whose staff are on the minimum wage. It comes as the minimum wage is set to rise by 6.7pc to £12.21 per hour on April 1, while the Chancellor's £25bn National Insurance raid will kick in on Sunday. The latter will mean that employers' NI rates will rise from 13.8pc to 15pc, while the threshold at which they start paying the levy will also fall from £9,000 to £5,000. The latest warning from the Resolution Foundation, previously headed by Torsten Bell, who is now a Labour MP, has been made less than a week after Ms Reeves's Spring Statement – which revealed a £14bn hole in her October Budget spending plans. The looming £25bn NI increase is including in the £36bn in Labour tax increases which come into force in the first week of April. Louise Hellem, the chief economist at the Confederation of British Industry, said the decision to increase both NI and the minimum wage will inflict further harm on businesses. She also highlighted how the upcoming increase in the minimum wage comes after an increase of nearly 10pc last year. She said: 'For those who benefit, it is obviously incredibly positive. But those are huge increases in the cost of employment. 'Those increases over the last few years added about £8bn to employers' wage bills. If you put that together with NICs it is about £12bn, so that is about £20bn before you even do the interaction between the two.' Ms Hellem also raised concerns over Angela Rayner's looming workers' rights overhaul. She said: 'Coming down the road is the Employment Rights Bill, which the Government's own estimation suggests will cost a further £5bn. So those are all quite chunky numbers.'
