Tue, 15 Apr 2025

Tue, 15 Apr 2025 UK jobs market weakens as employment costs grow

The number of job vacancies and people on payrolls fell ahead of changes to National Insurance and wages.

* Job vacancies have fallen to their lowest level in nearly four years, suggesting demand for workers is weakening.
* Average UK pay rose 5.9% year-on-year, but increases in employer National Insurance Contributions and National Minimum Wage hikes may weigh on salaries.
* Payroll numbers declined by 78,000 in March and were revised down for the previous month.
* The looming hike in employers' taxes in April has likely persuaded employers to hold back on hiring.
* Unemployment rate remains at 4.4%, but some economists predict that wage growth will slow due to rising labour costs.
* Recruitment firm Manpower says the effect of Donald Trump's tariffs and British Steel negotiations is adding to uncertainty for businesses.
* The strength in wage growth may delay further interest rate cuts, but the Bank of England may act to stimulate the economy.
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