Latest news with #privateemployers
Times
11-08-2025
- Business
- Times
Payroll costs bite as firms hire at lowest rate since pandemic
Companies are planning to hire new staff at their lowest ever rate outside of the pandemic after Rachel Reeves's raid on employer national insurance contributions, research has found. Only 57 per cent of private sector employers plan to recruit staff in the next three months, down from 65 per cent in autumn 2024, the survey of more than 2,000 businesses showed. Nearly one in three employers said the increases in national insurance contributions and increases in the minimum wage had increased their costs to a significant extent. This rose to 50 per cent of employers in the care and hospitality industries. • Can Keir Starmer and Rachel Reeves escape the economic doom loop? When asked which cost increases had the biggest financial impact on their organisation in the past year, 36 per cent of employers said it was the rise in national insurance contributions, 15 per cent said energy and 12 per cent cited minimum wage increases. The Labour Market Outlook survey was conducted by CIPD, the professional body for human resources staff. The finding came as a separate report on the jobs market from the accountancy firm KPMG and the Recruitment and Employment Confederation found that hiring fell further last month, while growth in starting salaries slowed to its lowest level for more than four years. The report showed a reading of 40 for permanent placements in the UK. Any figure below 50 represents a decline in the job market. Jon Holt, the UK senior partner at KPMG, said economic uncertainty, the complexities of AI adoption and global headwinds were 'all weighing on business planning'. He added that weak confidence in the economy and 'increases in payroll costs' were other factors behind the drop in hiring. James Cockett, senior labour market economist at CIPD, said that business confidence was faltering under rising employment costs, with further risks from Angela Rayner's Employment Rights Bill 'adding to the cost of employing people'. 'This is why it's crucial that planned measures, such as the introduction of a new statutory probationary period and process for dismissing new staff, are carefully consulted on to ensure they can work in practice,' he said. 'If new employment laws increase the risk and complexity of recruiting and managing new staff, employers are less likely to take a chance on young workers with limited experience and more development needs.' CIPD found that confidence was also lower in the public sector. More employers expected to reduce rather than increase their workforce in the next three months. Recruitment pressures were particularly evident in care, social work and other healthcare services. Cockett said it was crucial that employers were not forced to scale back on their recruitment and investment in apprenticeships and other forms of training for young people as costs rise. He added: 'Providing employment opportunities and developing the skills of young people is key to building sustainable talent and meeting future skills needs that support long-term business growth.'
CBS News
01-08-2025
- Business
- CBS News
AI is leading to thousands of job losses, report finds
The U.S. job market, already showing the strain from global trade tensions, is showing early signs of another critical issue facing workers today: artificial intelligence. In July alone, rising adoption of generative AI technology by private employers accounted for more than 10,000 job cuts, according to a report released this week by Challenger, Gray & Christmas. The outplacement firm lists AI as one of the top five factors contributing to job losses in 2025. Layoffs have jumped this year, adding to fresh concerns about a pullback in hiring after new llabor data on Friday showed that employers added only 73,000 jobs in July — well short of analyst forecasts. Through July, companies have announced more than 806,000 private-sector job cuts, the highest number for that period since 2020, Challenger, Gray & Christmas said. Of those layoffs, the technology industry wielded the sharpest axe — private companies in the sector have announced more than 89,000 job cut, up 36% from a year ago. Since 2023, more than 27,000 job cuts have been directly tied to the advent of AI, according to the firm. "The industry is being reshaped by the advancement of artificial intelligence and ongoing uncertainty surrounding work visas, which have contributed to workforce reductions," Challenger, Gray & Christmas said. The impact of AI on hiring is perhaps most visible among younger workers. Job listings for the kind of entry-level corporate roles traditionally available to recent college graduates have declined 15% over the past year, according to Handshake, a career platform geared toward Gen Z employees. Over the past two years, there has been a 400% increase in employers using "AI" in job descriptions, the firm found. While AI is already starting to reshape how Americans work, for now other factors are having a more immediate impact on the labor market. More than 292,000 positions have been eliminated this year because of cuts linked with the Department of Government Efficiency (DOGE), an initiative to reduce federal spending spearheaded by billionaire Elon Musk, Challenger, Gray & Christmas found. "We are seeing the federal budget cuts implemented by DOGE impact non-profits and health care in addition to the government," Andrew Challenger, senior vice president Challenger, Gray & Christmas, said in a statement. Layoffs are also accelerating in the vast retail sector as tariffs raise the cost of doing business, according to Challenger, Gray & Christmas. Retailers have announced more than 80,00- cuts through July, up nearly 250% compared to the same period last year, the firm found. "Retailers are being impacted by tariffs, inflation and ongoing economic uncertainty causing layoffs and store closures. Further declines in consumer spending could trigger additional losses," the group said.
Gulf Business
13-06-2025
- Health
- Gulf Business
Everything you need to know about the UAE's basic health insurance plan
Image credit: Getty Images The UAE has officially implemented its Basic Health Insurance Plan for private sector employees and domestic workers across the Northern Emirates, marking a pivotal shift in the nation's approach to healthcare access and affordability. Read: Effective since Affordable healthcare now a reality for thousands At the heart of the plan is a commitment to affordability. Under the new scheme, beneficiaries pay: 20 per cent co-payment for inpatient care, capped at Dhs500 per visit and Dhs1,000 annually 25 per cent co-payment for outpatient visits, with a maximum of Dhs100 per visit 30 per cent co-payment on medication, capped at Dhs1,500 annually Follow-up consultations within seven days of the original appointment are exempt from co-payment, a move aimed at encouraging consistent medical follow-through. The low-cost structure has been designed to lift a long-standing burden from domestic workers and laborers in the private sector, many of whom previously relied on out-of-pocket payments or informal arrangements. New coverage brings a regulatory shift The Basic Health Insurance Plan stems from a federal directive issued in 2024, requiring all private sector employers in Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain to provide mandatory health insurance for their workers. The scheme, now fully in effect, complements existing laws in Dubai and Abu Dhabi. Dubai's health insurance is governed by Law No. 11 of 2013 under the Dubai Health Authority (DHA), while Abu Dhabi follows Law No. 23 of 2005, enforced by the Department of Health (DoH). Both cities already mandate employer-sponsored insurance, including comprehensive benefits. With the Northern Emirates now on board, the UAE's healthcare policy framework has moved significantly closer to universal coverage. MOHRE and digital integration The Ministry of Human Resources and Emiratisation (MOHRE) leads the implementation of the Basic Health Insurance Plan in collaboration with the Ministry of Health and Prevention and the Federal Authority for Identity, Citizenship, Customs and Port Security. Insurance under the new scheme is administered via the Worker Health Insurance platform, managed by Dubai Insurance Company PSC, which also handles claims. The plan's data infrastructure is integrated with Riayati, the national digital health platform, and the National Unified Medical Record (NUMR)—a step that is streamlining patient care and bolstering public health analytics. 'This is not just about coverage; it's about systemic transformation,' said Anand Singh, Senior Counsel for Transport and Insurance at Al Tamimi & Company. 'We're witnessing a transition toward a data-driven, integrated health system that aligns with global best practices.' Changing the game for pharmacies The impact of the plan is already visible in the pharmaceutical sector. Over 44 pharmacies have joined the provider network, and more are expected to follow. These outlets report increased footfall from newly insured patients seeking both prescription medications and over-the-counter drugs. Pharmacies are being urged to upgrade their IT systems to comply with the plan's digital requirements, including electronic prescriptions and automated claims submission. The result? Faster approvals, fewer errors, and a more efficient dispensing process. This digital transformation is expected to reduce administrative delays and help create a seamless patient journey from diagnosis to treatment. Visa requirements reinforce compliance To ensure full enforcement, the UAE has made valid health insurance a mandatory requirement for residency visa issuance and renewal. Expatriates without proof of insurance coverage are ineligible for visa services, effectively closing the gap in enforcement that previously allowed some employers to bypass their obligations. Golden Visa holders must present proof of long-term health insurance, prompting insurers to develop specialised packages that cater to high-net-worth individuals and long-term residents. Strengths of the Basic Health Insurance plan The launch of this plan has addressed several long-standing gaps in the UAE's healthcare ecosystem: Greater access to healthcare: Thousands of low-wage workers now have access to essential services Financial protection: Medical costs are reduced for workers and employers alike Better public health outcomes: With increased access to early diagnosis and preventive care, the system is expected to reduce long-term treatment costs Streamlined data: Integration with Riayati and NUMR improves coordination across providers and ensures continuity of care Employers previously offering private coverage also benefit, as the Dhs320 plan offers a cost-effective alternative to more expensive insurance packages. Increasing costs The rollout of mandatory insurance arrives at a time when the UAE's healthcare industry is facing cost pressures across the board. Health insurance claims reached Dhs16.5 billion in 2024, an all-time high. Analysts warn that unless cost containment measures are introduced, both insurers and patients may face long-term challenges. For hospitals and clinics, the sudden influx of insured patients has led to increased demand for medical staff, diagnostic services, and infrastructure upgrades. Without sufficient capacity expansion, patients may encounter longer wait times, reduced face time with doctors, and service delays. Insurance sector reactions Insurance companies are also recalibrating. High claim volumes are pushing firms to tighten approval processes and reconsider premium pricing models. Some providers are exploring bundling coverage or introducing tiered plans to manage risk. The broader concern is sustainability. If costs continue to rise without corresponding revenue growth or efficiency improvements, insurers may be forced to raise premiums on other policies or reduce coverage options. 'This is where coordination between the government, healthcare providers, and the insurance industry becomes critical,' said Singh. 'You can't build a strong healthcare system without economic sustainability.' A blueprint for the region? Experts believe that the UAE's model could set a precedent for neighboring Gulf countries looking to reform their healthcare systems. The combination of affordability, mandatory enforcement, and digital integration creates a blueprint that balances access with accountability. However, observers stress that continuous monitoring, stakeholder feedback, and policy refinement will be essential. The road ahead The successful implementation of the Basic Health Insurance Plan is just the beginning. Authorities are expected to monitor the plan's rollout closely in the coming months, with potential expansions in coverage — including maternity benefits — already under discussion. As Singh put it, 'We've cleared the first major hurdle, but healthcare is a moving target. The next challenge is scaling up, closing the gaps, and making sure no one falls through the cracks.' For now, the UAE's health sector enters a new chapter — one that promises a more inclusive, equitable, and digitally enabled future.
