The UK jobs market is experiencing its weakest hiring activity in over a decade, with employer confidence at its lowest since 2011, excluding the pandemic period. Recent surveys indicate that recruitment has plunged at the fastest pace in nearly two years, largely driven by increased payroll taxes and a minimum wage hike implemented under the Labour government. These measures have contributed to a loss of over 250,000 payrolled jobs and a rise in unemployment to 4.7%, the highest level since 2021. While private sector employment contracts, the public sector continues to see growth supported by state funding. The ongoing deterioration in the labor market reflects broader economic challenges facing the UK economy.
UK jobs market weakens as higher labour costs bite https://t.co/yVqkxFSXtL
UK jobs market continues to weaken https://t.co/squIDsSoYY
🚨 NEW: Unemployment rises again under Labour — now at 4.7%, the highest since 2021. Fewer people in work. Wage growth slowing. Payrolled employees falling. Yet the only group seeing a boost? Public sector workers — propped up by state handouts while the rest of the economy https://t.co/sRX4lriodc