"Joblessness has been rising steadily since 2022, with the latest data pointing to further strain in the labour market following tax rises announced by the chancellor in her first two budgets. Employers have been grappling with higher costs at a time of subdued demand, making them increasingly cautious about taking on staff. Liz McKeown, director of economic statistics at the ONS, said the number of employees on payroll had fallen again, with job losses over the past year concentrated in retail and hospitality. She said this reflected "ongoing weak hiring activity"."
"Separate data from HM Revenue & Customs showed payroll employment has fallen by 220,000 since the October 2024 Budget. In the single month to December, payroll numbers dropped by 43,000, the sharpest monthly decline since November 2020, at the height of the Covid-19 pandemic, although such figures are often revised. Vacancies edged slightly higher in the latest period, but remain broadly flat over the past six months following a prolonged decline, according to the ONS."
The UK unemployment rate held at 5.1% in the three months to November, the highest level since early 2021. Joblessness has risen steadily since 2022 and payroll employment has fallen, with losses concentrated in retail and hospitality and payrolls down 220,000 since the October 2024 Budget. Payroll numbers fell 43,000 in December, the sharpest monthly drop since November 2020. Vacancies are slightly higher but broadly flat over six months after a prolonged decline. Employers face higher costs and subdued demand, curbing hiring; average regular pay excluding bonuses rose 4.5%, the slowest pace since spring 2022.
Read at Business Matters
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