Weak Business Confidence Impacting Hiring 

“Today’s labour market data is a stark example of the challenges awaiting Andy Burnham as he settles into Number 10. 

“While unemployment appears to have stabilized at 4.9%, our expectation is that it will rise further this year as low business confidence impacts hiring.  

“The BCC's latest forecast suggests it could reach 5.2% by Christmas as firms struggle with a host of cost pressures.  

“With vacancies falling, economic inactivity in flux, and private sector wage growth stalling, businesses are waiting to see how global and domestic policies shift. 

“With unemployment for 18–24-year-olds rising to 14.8%, the outlook for young people is becoming increasingly alarming as they struggle to get a foot on the career ladder. The BCC expects youth unemployment to reach 17% this year.   

“Against this backdrop it was encouraging to hear the new Prime Minister placing a renewed emphasis on education in his first speech, yesterday.  

“But more must now be done to bolster business confidence and unlock hiring by tackling cost pressures on firms, including a holiday on employer national insurance contributions for under 25s.” 

More detail on the labour market data can be found here.