The Office of National Statistics latest report shows unemployment has risen from 4.1% when Labour took office in July 2024 to 5.1% on Tuesday, an increase of around 24%. This is the sharpest rise in joblessness in several years and takes us back to levels last seen during the recovery from the pandemic. Businesses have been hit hard by Labour's increase to employers National Insurance Contributions (NICs) and National Minimum Wage (NMW).
Government House Leader Steve Clark is proposing to fast track a red tape reduction bill that includes banning speed cameras, a labour bill and an emergency management bill. The government plans to stop any further debate at the second reading stage for the three bills, then entirely bypass the committee stage that usually follows a time to hear from the public on the bill and make any amendments and limit debate time for the final, third reading stage.
As business leaders, trade union leaders and advocates who have witnessed the successful transition to a four-day working week (with no loss of pay) in many contexts, we can say with confidence that it is not just an idea for the future it is already delivering results today, the letter states. From different sectors and company sizes, we have all witnessed the same outcome: shorter working weeks are not only viable, but transformative.
The labour market continues to present a gloomy picture. While not as bad as some have feared, most of the important indicators are negative. Employment and vacancies are slightly down, inactivity remains a problem, and unemployment is up again. One particular issue is entirely predictable. The hike in employer national insurance contributions, plus the Employment Rights Bill threatening to bring in unfair dismissal from day one and the clampdown on zero hours contracts, all mean that employers are extremely wary of taking on untried
