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Young hit hard by trade wars and rise of Al
The Observer
|July 20, 2025
Employers cite national insurance changes and new living wage for hiring fewer people for lower paying jobs
The official unemployment rate rose to 4.7% in the three months to May, reaching the highest level since June 2021, according to data from the Office for National Statistics released last week.
Answering precisely why the jobs market is cooling is an inexact science, not least because the ONS has had persistent problems with its labour force survey.
Rises in employers' national insurance contributions, a new living wage, and cost savings from implementing artificial intelligence are cited as contributing to businesses' reluctance to hire. Inflation, elevated interest rates and trade wars may have a hand too.
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