Employment Expectations Drop to Lowest Level Since Covid as Reeves Tax Hikes Kick In – Guido Fawkes

Employment Expectations Drop to Lowest Level Since Covid as Reeves Tax Hikes Kick In

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Now that April’s tax horror week – with Reeves’ budget taxes coming into force – is starting to set in the Chartered Institute of Personnel and Development has conducted its latest survey into employer confidence. It tells a familiar story…

The figures:

• Net employment balance down to +8 from +21 in autumn 2024 and +13 in the last quarter
• Private sector net employment balance down to +11.
• 24% of employers are planning to make redundancies over the next three months.
• 11% of retail employers expect increase in staff over next three months,  30% expect a fall.
• Among private sector employers 32% plan increasing staff levels, down from 39% last quarter.
• Median employer planning redundancies will cut 5% of their workforce.

Those are the lowest employment balance figures outside of the pandemic. CIPD explains the downturn: “From April, employers across the UK have begun to feel the full effect of increases to National Insurance Contributions and the National Living Wage outlined in last year’s budget.” Plus: here comes the Employment Rights Bill…