Hiring Slump Deepens as Bosses Brace for Reeves Tax Raid
Businesses are reducing hiring plans and preparing for layoffs in response to Rachel Reeves's forthcoming £40bn tax increase, which includes hikes to the National Living Wage and National Insurance. A report indicates that demand for permanent roles has dropped for 18 consecutive months, with many firms citing economic uncertainties and rising payroll costs as reasons for scaling back. The anticipated changes are causing widespread concern, particularly among small and medium-sized enterprises, which may face significant financial strain.
- This trend highlights the precarious balance businesses must maintain between regulatory compliance and workforce sustainability, raising questions about the long-term health of the job market.
- How might the potential job losses and reduced hiring impact the broader economy and consumer confidence in the coming months?