Full‑Time Jobs in the UK Are Hanging by a Thread
When the government decided to go after employers in its budget, it turned out to be a disastrous move for the workforce. The result? A steady slide in full‑time employment that’s hard to ignore.
Employers Hero’s Snapshot
Employers Hero’s SmartMatch Salary Report pulls gutsy, real‑time data from 90,000 employees in small UK firms (1–500 staff). The data, collected right after December ended, shows the ripple effect of the late‑October budget decision—namely a 1.2% rise in employer NICs.
Why Now?
Although the increase is set to kick in only in April, employers feel the heat now. Picture this: a sudden tax hike, paired with other recent employment reforms, and the result is a swift reaction.
- Hiring slows down dramatically.
- Staff are let go in a bid to make do with the new numbers.
- Companies scramble to recalibrate budgets.
The Emotional Toll
Picture a small shop owner, wondering if she can afford to keep the barista on full‑time. When wages pitfall, the dreams of a steady income college student evaporate into a pile of unpaid hours. It’s a sobering reminder that policies meant to spruce up the economy may, in fact, be dampening hope.
Bottom Line
Employers Hero’s real‑time findings throw a stark eye‑opener: the government’s budget moves have already started to steer companies away from full‑time employment, putting more than just numbers on the line.
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The UK Workforce: A Tightrope Walk
Hold onto your hats— the job market is doing a little dance move that balances on a razor‑thin edge.
Measuring the Drop
Full‑time jobs contracted 0.1% this month, a small dip following the 1.7% plunge that hit in November.
Across the last quarter of 2024, the overall slide is 0.8%.
Which Folks Are Feeling the Pinch?
- Youngsters (18‑24) -0.7% out of full‑time gigs.
- The seasoned (55+) -0.3% as well.
The Darkest Corner of the Job Landscape
The healthcare sector is dragging its heels hardest: a 3.5% shrink in full‑time staff by December’s end.
What This Means
From bouncy pupus to the retirement crowd, the hiring pause is taking its toll where it’s most vulnerable.
So, if you’re on the payroll radar, keep your eyes open— the churn’s turning up the heat.
UK Employers Throw a Wobbly at Holiday Hires
Kevin Fitzgerald – the MD of Employment Hero UK – says the latest numbers are a “no‑confidence vote” from bosses.
“It’s utterly mind‑boggling that the normally bustling Christmas hiring rush has turned into a contraction,” Fitzgerald grumbles. “Everywhere you look, firms are pre‑emptively pulling back because the Government is gearing up to dump a flood of new taxes on them.”
Who’s Taking the Hits?
- Young workers – the fresh‑face talent pool that’s suddenly getting the short end of the stick.
- Healthcare staff – the people who should be rising to the occasion, not slipping through the cracks.
Fitzgerald warns that the two‑month slump isn’t a blip. “It’s a presage of more pain across the entire workforce,” he says. “The real impact of the NICs hike might be a lot worse than what the Government expected.”
Time to Make a Decision
Either the Government “undoes its job‑tax gamble,” or it needs to give small businesses a break from the looming expense spike. “If they don’t act now, we’re all in for a rough ride,” Fitzgerald concludes. Feel the weight, folks – the job market isn’t so cheerful after all.
