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Britain’s hiring market remains sluggish and pay is stagnating with employers worried about possible further tax increases in finance minister Rachel Reeves’ November budget, according to a survey of recruitment firms published on Friday.
The Recruitment and Employment Confederation’s data for September showed further sharp falls in hiring although the drop in new permanent staff was the least severe in 12 months.
Vacancies were down, especially in retail and hospitality which have been hit hard by Reeves’ decision at her first budget last year to raise social security contributions for employers.
Starting salaries barely rose and those of permanent staff increased by the least since a run of pay growth started in March 2021.
REC Chief Executive Neil Carberry said Reeves could boost corporate confidence in her November 26 budget by avoiding fresh tax rises for business and showing flexibility on a plan to give workers more right that employers fear will add to their costs.
“A genuinely pro-business, pro-growth Autumn budget next month could provide much-needed relief,” he said.
Reeves is widely expected to increase taxes to keep the public finances on track to meet her fiscal targets.
(Writing by William Schomberg)
