Rises in Employment Costs Prompt Job Cuts and Price Hikes
Companies are planning job cuts or reduced recruitment ahead of rises to National Insurance payments and wages, according to a survey by the Chartered Institute of Personnel and Development (CIPD). Firms are also likely to increase prices to cover their rising employment costs. The government's planned increases in National Insurance Contributions (NICs) and the National Minimum Wage will come into force in April.
- This development highlights concerns about the potential impact on economic growth, particularly for sectors with large workforces such as retail and hospitality.
- Will the anticipated job cuts lead to a sustained increase in unemployment rates in the coming months?