Cost of hiring a challenge, but businesses remain resilient

Figures show that overall job postings rose 2.3% in February, but time will tell if changes in April have affected hiring numbers.

While there has been consistent demand during Spring, the stabilising of the job market is expected to be tested due to the rising costs of employment in April. This is thanks to the Employer’s National Insurance Contributions, alongside the National Minimum Wage.

The latest Recruitment and Employment Confederation (REC)/ Lightcast monthly Labour Market Tracker shows that there are some signs of momentum in the economy that may push back against the effects of rising costs.

Commenting on the findings, REC Chief Executive Neil Carberry said, “There’s no denying it feels tough to employ people as the cost of taking workers on rises, but businesses are resilient, and they continue to create opportunities.

“With a steady 1.6m active job adverts out there, employers are seeing glimmers of hope. The labour market is stabilising, and February’s economic growth figures offered cautious optimism, while the UK looks relatively well-placed to weather some of the external shocks from shifting global trade policy.

“But employer confidence remains fragile. Government must do more to support growth with its upcoming industrial strategy, and by showing it is listening to business concerns about the way the Employment Rights Bill will work. Investment will stay stuck in neutral if all that is offered is warm words. Competitiveness matters to business, and the ability of the private sector to drive the growth that will solve the government’s fiscal headache.”

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