Rising employment costs threaten job opportunities

Rising employment costs could discourage businesses from hiring young people, particularly if proposed new employment laws increase the risk and cost of recruiting young talent.

- James Cockett, senior labour market economist at the CIPD, the professional body for HR and people development

Findings from the CIPD's latest Labour Market Outlook revealed that hiring intentions among private sector firms remain at a record low, outside of the pandemic, as they grapple with increases in national insurance contributions (NICs) and other rising costs.

The quarterly survey of more than 2,000 employers found that 57 per cent of private sector employers plan to recruit staff in the next three months, down from 65 per cent in autumn 2024.