February Labour Market Statistics: comment from the Institute for Employment Studies
18 Feb 2025
Commenting on today's figures, Seemanti Ghosh, Principal Economist at the Institute for Employment Studies said:
“The 2024 Autumn Budget that announced an increase in both employer National Insurance contributions (NICs) and the National Living Wage has had a notable impact on business sector confidence, due to the perceived increase in the financial burden on employers.
“The UK government justified the increase in employer NICs to invest in public services, which may ease labour market challenges in the long run. But in the short term, the government needs to build business confidence in the upcoming budget and the finalisation of Labour’s industrial strategy has never felt so urgent.
“A balanced approach that combines short-term business support with long-term public service investment will be crucial in navigating the economic challenges ahead.”
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 Seemanti Ghosh
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