Unemployment’s Unexpected Surge – The 2024 Budget Effect
According to the latest snapshot from the Office for National Statistics (ONS), unemployment in the last quarter of the year hit 4.5%, a jump from 4.4% in the previous month. A slight bump, but enough to raise eyebrows among economists and job‑seekers alike.
Wage‑Worries House the Economy
- Average regular earnings fell to 5.6%.
- When you factor in inflation (the Consumer Prices Index), the real gain drops to just 2.6%.
- Bottom line: people are earning less in real terms than they did earlier.
Why the Numbers are Rising
Experts suspect that the spike in unemployment is linked to the Chancellor’s Autumn Budget of 2024. Rachel Reeves announced increased National Insurance Contributions (NIC) for employers, effectively raising the cost of hiring.
“Businesses are feeling the pinch,” says a leading HR analyst. “Many are freezing pay rises or even planning redundancies.”
- From April 1 st, employer NIC rates spiked by 15%.
- The rise ties into both the new tax raid and the uptick in the minimum wage.
In short: higher costs mean fewer jobs, less wage growth, and a less vibrant job market.
Seeking Alternatives
With the economy cooling, job seekers are ending up on the sidelines. If you’re navigating this landscape, consider upskilling, pivoting to gig work, or exploring more resilient sectors.
Meanwhile, the government’s plan for pensions has stirred debate, prompting critics to label it “dangerous and misguided.” But that’s a discussion for another day.
The British people ‘are paying for Rachel Reeves’ choices’ as government borrowing soars
Rachel from accounts has failed as the British economy is in the ‘worst slump since the financial crisis’
Taxes Gutted Jobs? Why Everyone’s Gasping for More Help
TL;DR: The chancellor is screaming that higher taxes are the monster eating jobs, and “reasonably” speaking, that might actually be true.
Labour Market: Tight as a Soup Can
Meet Joe Nellis, our favourite payer of the wage-boosting dragon. He tells us the UK is still running on a high-octane engine: unemployment is low, and paychecks are sprinting ahead of inflation – the latest 5.6% bump makes workers feel like they’re getting paid in gold even as prices rise.
That wage growth is eye‑catching for the Bank of England – FIGURE OUT what they might do with interest rates while keeping everyone (even those with a “divided” MPC) happy.
Vacancies: Where Are All The People?
- Since mid‑2022, job listings have been melting away.
- In the recent March‑April 2025 quarter, the UK collected 131,000 fewer openings – that’s 14.7% less than last year.
- That shortage of job ads is adding extra pressure on business confidence and hiring.
Costs Keeps Slacking Momentum
Wage hikes aren’t the only culprit. Employers face steep rises in:
- National Insurance contributions (NICs)
- National Living Wage demands
- Trade uncertainty potholes
Together, they’re a double‑whammy that will start cooling down the business engine.
Prime Minister – Trump’s Moment? The Tariff Fight
The Prime Minister’s recent tariff wins look cheery at first— yes, small gold bars for certain goods! But this is just a drop in the ocean compared to protecting UK exports at large. The battle is far from finished.
What to Do? Keep an Eye Out
Stay tuned for a live update pulse on this tale. If you want a daily dose on how the tax‑tax‑tax wave ripples, subscribe now. No fancy links, just plain words that feel like a real conversation.
