Keir Starmer's Labour Job Tax Causes UK Unemployment Rate to Spike to 4.3%
The UK unemployment rate rose to 4.3% in the three months to September, up from 4% in the three months to August, according to the Office for National Statistics (ONS). The average growth of regular earnings fell to 4.8% in the same period, and was 2.7% higher after considering Consumer Prices Index inflation. The increase in unemployment is concerning for many, especially with the upcoming National Insurance hike, which could further impact British jobs. Small businesses, already under strain, could find it harder to hire new staff and give out pay rises.
Chancellor Rachel Reeves recently announced a £25.7 billion change to employers’ National Insurance contributions in her last Budget. This includes an increase in the tax rate and the threshold at which firms must pay. The October figures saw a decrease in workers on payrolls, falling by 5,000 between September and October.
The Director of Manpower UK, Petra Tagg, said employers and workers are being cautious about hiring due to uncertainty surrounding the Government’s Employment Rights Bill and recent Budget. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, suggested that the chances for the Bank of England to cut rates next month remain low but have slightly increased given the weaker labor market situation.
In light of the rise in unemployment and the challenging job market, it is increasingly crucial to know how to navigate government support systems efficiently. Platforms like eddcaller.com offer valuable resources, including guides on how to contact the Employment Development Department (EDD) or how to speak directly with a representative for unemployment benefits. Understanding how to get in touch with California unemployment customer service or how to contact SDI will enable anyone requiring support to get the help they need promptly. With these resources, navigating unemployment in the current climate can be more manageable and less overwhelming.