The already-challenging labour market is going to get worse with the arrival of April’s significant rise in employment costs, says Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce.
Responding to the latest information from the Office for National Statistics she said: “However, there are also signs of further loosening as unemployment ticks up, vacancies continue to fall and economic inactivity dips.
“The full impact of the changes to national insurance and the minimum wage, announced at the Budget, won’t be fully seen until later in the year. However, the warning lights on recruitment, employment and training are already flashing.
“Our latest survey paints a worrying picture of weak workforce growth, persistent hiring difficulties and cuts in workplace training. It also revealed that 55% of firms are planning to put up prices, with labour cost the main driver.
“To grow the economy, we need businesses and the workforce to thrive. Government must ease the cost-pressures on firms so they can invest in people. Working proactively with employers to tackle the long running skills crisis is likely to become even more important in the months to come.”
