IoD press release Cumulative impact of employment reforms is damaging hiring intentions
Commenting on this morning’s release of ONS labour market data, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data points to a worrying outlook for job creation in the UK, with both vacancies and the number of payrolled employees falling.
“The combined impact of the increase in employer’s National Insurance Contributions (NICs) and the measures contained in the Employment Rights Bill is damaging hiring intentions by increasing the cost and risk of employing staff.
“Our own data shows that employer hiring intentions are at their lowest point (-24 in November 2024) since May 2020 (-33), and that 43% of businesses facing higher employer’s NICs bills plan to reduce employment as a direct result.
“Against this backdrop of increasing employment costs, the government’s decision to delay phase two of its pensions review is welcome. Government now needs to take urgent action to alleviate employment costs for businesses and address employers’ concerns about the most damaging aspects of the Employment Rights Bill.”
Full results
601 responses from across the UK, conducted between 15-27 November 2024. 14% ran large businesses (250+ people), 20% medium (50-249), 26% small (10-49 people), 30% micro (2-9 people) and 11% sole trader and self-employed business entities (0-1 people).
You said the changes will increase your employer National Insurance bill. How do you plan to respond to the resulting higher costs of employment?
Comparing the next 12 months with the last 12 months, what do you believe the outlook for your organisation will be in terms of:
