IoD press release Government must tackle cost of employment to reverse jobs decline
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 shows a further deterioration in employer demand for labour, with the number of vacancies down 3.9% on the quarter, hitting their lowest level in five years, and the number of payrolled employees down 100,000 on the month.
“This weakening of the jobs market is a direct result of the Government’s employment policies; by increasing the costs and risks involved with hiring via the Employment Rights Act, consecutive years of above-inflation minimum wage increases, and the employer National Insurance increase, the Government has materially damaged the business case for taking on staff.
“The Government must urgently address the rising cost of employment if it is to reverse this decline. However, recent IoD research has found that its current approach of one-off incentives, such as the Youth Jobs Grant, will not undo the damage done to employers’ ability and willingness to hire more staff.
“The only sustainable way to encourage employers to create more jobs is to remove barriers to hiring. This should begin with meaningful tripartite negotiations with business and unions on the implementation of the Employment Rights Act, including on trade union access to workplaces and guaranteed hours contracts.”
