The number of people seeking work has risen fastest in five years, as businesses brace for potential tax increases in Chancellor Rachel Reeves’s Autumn Budget.
According to the latest KPMG and Recruitment & Employment Confederation (REC) survey, August saw the sharpest jump in jobseekers since November 2020. Recruiters pointed to “weak confidence around the economic outlook and concerns over costs” as managers scaled back hiring and some companies cut staff.
The findings come from the Government facing pressure to boost economic growth while reducing the benefits bill for the unemployed. However, expectations are growing that the Chancellor will announce further tax rises in November to address a shortfall in the public finances.
Last year, her first significant fiscal statement delivered a record £40 billion tax package, including higher employer National Insurance contributions. Critics labelled it a “jobs tax”, arguing it discouraged hiring. Reports now suggest the Chancellor is preparing to expand the National Insurance measures in the forthcoming Budget, potentially affecting around 190,000 workers. Those most likely to be hit include GPs, lawyers, solicitors, accountants and financial advisers.
The survey also revealed stark regional and sectoral trends. The South East recorded the steepest decline in vacancies, while construction was the only industry showing increased demand for staff. Retail and hospitality registered further drops in permanent job opportunities, adding to concerns about the health of the jobs market.
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