Responding to the announcement that the number of people in employment across the UK fell by 58,000 last quarter, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:
“Today’s figures paint a worrying picture of a cooling labour market. Hiring intentions among small businesses have dropped to a two-year low – nine in ten are not planning to increase headcounts this quarter.
“Employment costs are spiralling, and are flagged as the number one cause of higher outgoings among small firms. Between pension contributions, rising wages, and national insurance, it’s a real challenge for small businesses to make new hires.
“Greater assistance with managing these costs is needed if the next government wants to avoid a full blown surge in the unemployment rate. Employer’s national insurance contributions serve as a jobs tax, and a disincentive to hire.
“While a discount on NICs bills is available to small firms through the Employment Allowance, the £3,000 worth of breathing space it offers needs to be increased urgently.”
Notes to editor
1) Figures taken from the FSB Q3 2019 Small Business Index.