"The improvement in the unemployment rate owes more to a statistical sleight of hand than to any underlying strength in hiring, with vacancies sliding to a near five-year low of 711,000."
"Since chancellor Rachel Reeves unveiled the rise in employer national insurance contributions, payrolled employment has contracted by 143,000, highlighting the burden on smaller firms."
"Wage growth has now slowed to its weakest pace since the depths of the pandemic, with private sector pay growth at 3.2%, the lowest since October 2020."
"The squeeze on private pay is the clearest signal yet that hiring confidence has drained from the system, particularly affecting sectors like hospitality and retail."
Britain's unemployment rate fell to 4.9%, but this decline is misleading due to a drop in job vacancies and employment. The number of vacancies reached a near five-year low, and payrolled employment decreased by 11,000 in March. The increase in employer national insurance contributions has negatively impacted small and medium-sized enterprises, leading to a total contraction of 143,000 jobs since October 2024. Wage growth has also slowed, particularly in the private sector, indicating a lack of hiring confidence.
Read at Business Matters
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