Recession Alarm Rings as the Budget Shakes the Economy
Key Numbers that Make Your Head Spin
- National Insurance hike: a whopping £25 billion boost that’s set to put a slap on job‑creators’ wallets.
- Minimum wage jump: from 13.8 % to 15 % for earnings over £175 in April.
- National Living Wage boost: 6.7 % increase courtesy of Rachel Reeves.
James Reed’s Graveyard Warning
Reed, the chairman of the recruitment giant Reed, told BBC Radio 4’s Today programme that the UK’s job market is tipping into a slow‑motion car crash. “Vacancy numbers in January fell 22 %,” he said. “It’s not a rally; it’s a steady slide,” adding that the ONS recorded 30 consecutive periods of decline.
Reed compared the tax’s impact to a 3 % payroll cost rise—the razor‑thin line between profit and loss for many businesses.
The Cascade of Consequences
With more employers pulling the plug on payroll, good people are finding themselves out of jobs, bright companies trimming growth plans, and recruitment teams hitting pause on hiring.
Local Reactions
Laura Taylor from the Liverpool-based Recruitment Agency echoed Reed’s concerns, emphasising the ripple effect across the north of England where job vacancies surged.
What This Means for You
In the days ahead, expect the minimum wage to raise wages for many, but wage growth could be squeezed by higher national insurance costs. The tighter labor market may mean tougher competition for top talent, and companies may be more selective about who they bring in.
