Jobs glooms spells fresh challenges for Labour growth bid

RACHEL Reeves was dealt another hammer blow as the economic gloom hanging over the UK and spiralling employment costs hit jobs.

- Michael Knowles Home Affairs and Defence Editor

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 report by KPMG and 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 decline in the jobs market, with levels over 50 showing growth. Shadow Chancellor Mel Stride said: “Hardworking 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.

Failures

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