IoD press release Employment policies continue to take a toll on the labour market
Responding to the latest ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data reflects a softening labour market, with payrolled employees decreasing on the month by 0.1% (0.6% on the year) and vacancies down by 63,000 on the quarter.
“This continued slump in the demand for labour is the predictable result of a series of policy blows to the case for hiring staff. The cumulative impact of the increase in Employer National Insurance Contributions, the Employment Rights Bill, and above-inflation increases to the National Living Wage has been to significantly increase the costs and risks associated with employing staff.
“With IoD research showing that more business leaders plan to reduce their employee headcount over the next year than increase it, this situation is unlikely to improve any time soon.
“A significant rethink is needed if the government is to meet its aims of driving economic growth and increasing the employment rate. The government’s commitment to consult on the detail of secondary legislation associated with the Employment Rights Bill is welcome, but will have no effect on hiring unless it is genuinely used to listen to and address the concerns of employers.”
