New data from the Office for National Statistics suggests that UK businesses are continuing to slow down recruitment, with job vacancies falling by 63,000 between March and May.
While this doesn’t indicate a full-blown jobs crisis, it’s a clear sign that the labour market is cooling. The unemployment rate rose to 4.6% (from 4.5%), the highest it has been in nearly four years.
What’s Driving the Change?
Rising employment costs are a big factor. From April, employers have had to pay higher National Insurance contributions, and the national minimum wage has gone up too. The figures suggest that these changes are affecting how businesses manage staffing.
According to the ONS, some employers are choosing not to replace staff when they leave or are putting off recruiting new workers altogether. While average wage growth between February and April slowed slightly to 5.2%, it still outpaces inflation, which rose to 3.5% in April. This suggests that although wage pressure is slowing, employers still need to carefully manage pay expectations.
What This Means for Your Business
If you’re finding recruitment more difficult or too expensive, the figures suggest that you’re not alone.
This could be a good time to:
- Review staff roles and make sure people are focused on the tasks that really help the business succeed right now. You might find some responsibilities can be reshuffled or streamlined to save you time and money.
- Think about more in-house training. Someone already working for you might be able to take on more with the right training. This could be a better option than hiring someone in with those skills.
- Check what support is available. There may be grants, training funds or wage subsidies on offer in your area that could help with staff development and easing your costs.
If you need help with reviewing your staffing strategy or payroll planning, please give us a call. We would be happy to help you!
Charity trustees in England and Wales now have new legal powers when considering moral payments: payments made because there is a moral rather than strictly legal obligation to transfer some of a charity’s property.
The deadline for filing your 2024/25 Self Assessment tax return is fast approaching. You must submit your return and pay any tax due by 31 January 2026 to avoid penalties and interest.