UK Article’s Post

Questions? 1)Is the UK job market doing enough to entice the youth market into a promising career? 2)Is the UK job market offering enough to retrain the unemployed? 3)Are employers offering enough flexibility in the working regime to encourage those back with family commitments or long term health issues?

Without offset funding, the recent UK budget could come close to destroying general practice as we know it. The increase in National Insurance and changes to thresholds will cost our business over £300,000 per annum, with further costs expected once wage increases take effect from 2025. I don’t see the economic logic in attempting to raise £25 billion through changes to employers' National Insurance if, ultimately, UK companies respond with up to £25 billion in redundancies. A reduction in the workforce means fewer people paying taxes, spending within the economy, and potentially a greater number seeking unemployment benefits.

UK Businesses Halt Hiring Amid Economic Uncertainty A recent survey by KPMG and the Recruitment & Employment Confederation (REC) reveals that UK businesses have put hiring on hold due to uncertainty over the government's plans on tax, industrial strategy, and workers' rights. The survey shows that recruiters placed fewer people in jobs in September, continuing a market slowdown that has lasted two years. Growth in starting salaries was also at its weakest since February 2021. Factors Contributing to Hiring Slowdown Several factors have contributed to the hiring slowdown: - Businesses are waiting for clarity on future taxation, business, and economic policy before making hiring decisions - #Recruitment agencies cite "unclear government policy" as a reason for their clients' caution - Confidence in the UK economy has been rattled by ministers' warnings of tough decisions on tax, benefits, and spending in the upcoming Budget Demand for Staff Varies by Sector The survey indicates that the drop in demand for permanent roles was sharpest in the #retail, #construction, and #technology sectors. However, there was significant growth in demand for #medical, #nursing, and #care workers. Looking Ahead Chancellor Rachel Reeves has been seeking to convey a more upbeat message, stating that the Budget will focus on investment rather than fresh public sector austerity. REC chief executive Neil Carberry suggests that any further move by the Bank of England to cut interest rates would boost business, but employers also need more certainty over the government's plans for sweeping reforms to employment law. A couple of questions: 1. How can the #UK government provide businesses with the clarity and confidence they need to resume hiring? 2. What steps can be taken to address the varying demand for staff across different sectors and ensure a balanced labour market? Source: FT #Budget #Labour #Jobs #Employment

🚨 Did the Budget Boost or Burden a Tepid UK Economy? 💼📉 🙄 For me, the recent #government budget has significant implications for business owners, wages, and employment decisions. Here are the key points: National Insurance Contributions: Employer National Insurance (NI) contributions have increased to 15% on salaries over £5,0001. This places a higher financial burden on businesses, potentially leading to hiring freezes or a shift towards part-time or freelance roles to manage costs. Minimum Wage Increase: From April, the minimum wage for employees over 21 will rise to £12.21 per hour1. This increase will impact payroll costs, especially in sectors with lower wages, such as #hospitality and retail. Businesses may need to adjust budgets, increase prices, or find operational efficiencies to meet these new wage requirements. Stamp Duty Surcharge: The surcharge on second properties will increase from 3% to 5%1. This could deter small businesses (like myself) from investing in real estate due to higher upfront costs. These changes mean business owners face tough choices, balancing between insolvency, layoffs, and potential hiring freezes. The philosophical question remains: how can businesses adapt and thrive in this challenging economic landscape? 🌟 #UKBudget2024 #BusinessImpact #SmallBusinessSupport #FiscalPolicy #MinimumWage #CorporateTax

Research carried out by the Resolution Foundation has found that real average earnings are just £16 a week higher than they were 14 years ago. The Resolution Foundation said that the UK's labour market backdrop to the General Election is a 'prolonged pay squeeze' that has left real average wages today just £16 a week higher than in 2010. It stated that this has been caused by 'three shocks to pay packets', including the financial crisis, the Brexit referendum and the cost-of-living crisis. According to the Resolution Foundation, in the 14 years prior to the 2010 election, average real wages grew by £145 a week in total. Commenting on the issue, Hannah Slaughter, Senior Economist at the Resolution Foundation, said: 'Britain's prolonged pay depression has left average earnings just £16 a week higher than they were back in 2010, despite the welcome return of rising real wages in recent months. 'Worryingly, Britain's decade-long jobs boom during the 2010s has also gone bust, with the UK one of only a handful of countries where employment has yet to return to pre-pandemic levels.' #accounting #accountingandfinance #ResolutionFoundation #TeamSwenta

Real average earnings are just £16 a week higher than they were 14 years ago! Resolution Foundation revealed that the real average wage today is just £16 a week higher than in 2010. According to the Resolution Foundation, in the 14 years prior to the 2010 election, average real wages grew by £145 a week in total. Hannah Slaughter, Senior Economist, said: “Britain's prolonged pay depression has left average earnings just £16 a week higher than they were back in 2010, despite the welcome return of rising real wages in recent months.” “Worryingly, Britain's decade-long jobs boom during the 2010s has also gone bust, with the UK one of only a handful of countries where employment has yet to return to pre-pandemic levels.” #wages #salary #earnings

The median salary in the UK before tax is £34,963. I guess many LinkedIn members may consider this quite low. Anyone who watched 'Question Time' on the BBC in 2019 may remember the case of an irate audience member - earning above £80,000 - who assumed he wasn’t in the top 5%, or even the top 50% (!) It seems we generally tend to feel that our own social circle is “better off”, and ourselves “worse off”. More surprisingly those in the top 5% (earning £82,200 and above) - such as doctors, dentists, lawyers, accountants, recruiters and people working in finance etc. - are much closer to the national median than to the top 1% (£183,000 and above) which is really rather a high wage indeed, and in these 1%, their wealth is rapidly accumulating. With it looking likely that labour will win this year's General Election, I wonder how things will look in 2025 and beyond.

First thing Government should do is slash their frivolous spending and ridicululous expense claims. How does she think she'll grow an economy once she's destroyed it by raiding taxes and pockets? There's a headline that people are putting 2nd homes etc up for sale before a perceived capital gains tax raid. The rich (millionaires) are reported to be leaving in droves. SME businesses are closing at a ridiculous rate because of soaring costs. As more people lose jobs, tax income decreases and the welfare bill rises. Who pays for the welfare bill? Socialists will say the Government, sidestepping the fact that it's the tax payers who actually pay. You can't grow crops in an infertile (poisoned) garden ..... and that's the UK environment ..... toxic to business. Just remember, the last Labour Government introduced, and increased, more taxes than any previous government. This one is already on track to surpass Browns' raids. https://lnkd.in/eckuqsnZ

The Employment Allowance should be increased to £6,500 in the upcoming Spring Budget, says the Federation of Small Businesses (FSB). This would help make it more viable for firms to maintain and extend jobs and hours, including to those currently economically inactive and others out of work, according to the business group. The move would also help support businesses to afford the increases to the National Living Wage (NLW) in April, the FSB said. The business group says that if employers' National Insurance contributions (NICs) stay the same from April 2024, the current £5,000 will only cover three full time employees instead of the four it was originally designed to cover at the NLW of £11.44 an hour. In the years ahead, the Employment Allowance should be linked to the NLW to ensure it keeps up with wage increases, the FSB added. FSB National Chair, Martin McTague, said: 'The Employment Allowance has been a big success, giving small firms a real shot at creating jobs and making their business thrive. Entrepreneurs are the ones who helped lead us to recovery after the 2008 recession, and we need to be creating a climate where they are encouraged to make a go of it, knowing they're doing so in a supportive environment. 'Small businesses are overwhelmingly the route into work for those who are currently out of work, and we need to be doing everything we can to support small employers.' #EmploymentAllowance #SmallBusinessEmployment #SupportingSmallBusinesses #HelpingYourSmallBusinessGrow #accountants #SmallBusinessAccountants #GrantJones