Businesses in the UK have warned that growth and recruitment will fall for the first time this year, according to an industrial trends survey by the Confederation of British Industry, writes David Connett.
Companies said that Budget announcements are set to lead to job cuts in the three months to February as polling found recruitment plans at their weakest since January 2021.
Many firms said their plans to hire staff had been set aside since the summer but many said that the rise in employer national insurance contributions (NICs) will “dampen hiring, push up prices and/or squeeze investment budgets”.
Job vacancies have continued to fall and the number of unemployed workers per vacancy has steadily increased.
Companies said October’s Budget hit sentiment across the private sector further, with most reporting a mostly negative reaction to the Chancellor’s announcements.
The CBI, which represents 170,000 businesses, said its snap survey after Chancellor Rachel Reeves‘s announcements found that …