Customers queue at a Fish & Chips shop in the Soho district of central London, UK, on Wednesday, June 18, 2025. Photographer: Jose Sarmento Matos/Bloomberg
LONDON: Hiring by UK businesses has plunged at the fastest pace in nearly two years, according to a survey that suggested that the fallout from a hike in payroll taxes is showing little sign of letting up.
Permanent staff appointments fell by the most in 22 months in June and the number of available workers jumped, a monthly report by KPMG and the Recruitment and Employment Confederation (REC) showed.
The survey of recruitment firms and employers pointed to the labour market continuing to cool after Chancellor of the Exchequer Rachel Reeves pushed through a £26bil (US$35.1bil) increase in employers’ national insurance and a hike in the minimum wage.
Official tax data suggested that employment has fallen sharply since the changes came into effect in April. It showed that the number of employees on payrolls has plunged by over a quarter of a million since Labour’s first budget in October.
“Much of that hesitation stems from the scar tissue left by the spring tax hikes and fear of further business tax rises,” said Neil Carberry, REC chief executive.
“There is more volatility month by month in the jobs market right now, as employers assess a complex picture and hire when they need to.” — Bloomberg
