'Recruitment is collapsing, wages stalling and families must tighten their belts'

RACHEL Reeves was dealt another hammer blow yesterday as experts said Britain’s economic gloom is hurting the jobs market.

- By Michael Knowles

Hospitality firms have been “taxed out” from hiring, triggering “the death of the great British summer job”, industry chiefs warned.

And Labour’s economic plan faced more criticism after a monthly report on jobs showed a “further steep decline” in people taking permanent roles.

The influential review by accounting firm KPMG and recruitment experts REC showed a reading of 40.0 for permanent placements in the UK in July, up marginally from 39.1 in June.

But any figure below 50 represents a decline in the jobs market, indicating a month of overall contraction.

The Conservative Shadow Chancellor Mel Stride said yesterday:

“Working families are paying the price for Labour's economic mismanagement.

“The Chancellor's punishing jobs tax and reckless economic choices have crushed business confidence and seen unemployment go up every month.

“Labour promised growth. Instead, hiring is collapsing, wages are stalling, and families are being forced to tighten their belts.

“Rachel Reeves hasn’t learnt her lesson and is now preparing yet more tax rises — taxing your future to pay for her failures.

“We can’t afford Labour.”

Allen Simpson, chief executive of UK Hospitality, said: “At this time of year hospitality businesses are usually frantically hiring staff for the busy summer months. The sector expects to welcome families to their hotels, serve countless ice creams on the beach, fish and chips on the pier and cold pints in the pub garden.