Unemployment Scene Gets Sweeter (and Worse)
The Latest Numbers from ONS
The government has a cracking urgent meeting on the Thursday figures that ONS just dropped. The unemployment rate has climbed to 4.7%, payrolls are shrinking, and wage growth has slowed to a snail‑speed crawl.
Why It’s Not Just Numbers
- Jobs are getting pricier—you have to pay more to hire people, so businesses are pulling back.
- Joblessness is creeping up—the more you raise the cost of employment, the fewer folks you can afford to bring in.
- Benefits are ballooning—with fewer jobs, more people will chase that safety net.
- The business side is stuck—without revenue, firms hit a wall and stop expanding.
The Government’s Wake‑Up Call
There’s a clear warning blowing across the halls: the current tax playbook might just “kill private‑sector jobs”. If left unchecked, we’re looking at a level of unemployment “not seen in years.” That means the planning, the shortages, and the fares of the new benefit bill will keep on rising.
Bottom Line
In short, the latest ONS data is a heartbeat‑fast reminder that the economy is teetering. The downtime is real until the government shakes the tax machine, eases the cost of hiring, and gets the job market back to normal.
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Rachel’s Autumn Budget and the Looming Job‑Market Storm
Professor Len Shackleton, the sharp‑tongued Editorial Fellow at the Institute of Economic Affairs, is preaching from his podium about how the latest budget has set the stage for a massive rise in unemployment. He calls it “disturbing,” pointing out a hardening rhythm in the labour market: payroll jobs shrinking, vacancy counts falling, and unemployment climbing.
What’s Behind the Numbers?
- National Insurance Hike – the extra tax bite that’s tightening companies’ pockets.
- Employment Rights Bill – the new safety net that, paradoxically, is pushing employers to hold back rather than hire.
Shackleton argues the government is “more good at destroying jobs than creating them.” Apart from a handful of taxpayer‑backed roles in quangos, regulators, and the civil service, our hands are essentially free to do nothing. The consequence? Private‑sector employment is simply becoming too pricey.
Can We Still Turn the Tide?
He warns: “It’s not too late for policy shifts, but governments rarely learn fast.” If we keep nailing these policies, we’ll see a wave of joblessness that hasn’t hit Australia in decades.
Takeaway
While the budget sounded like a toast to growth, the reality is a sign‑post toward a tougher job market. Lawmakers need to re‑think the budget’s side‑effects before a crippling unemployment surge wipes out the progress we’ve seen.
