Over 100,000 job losses since April NICs increase
New data from the Office for National Statistics (ONS) can reveal that the number of payrolled employees decreased by 109,000 in May compared to the previous month. The employment drop comes after April’s National Insurance Contributions (NICs) policy changes.
The statistics exceeded predictions made by both the Office for Budget Responsibility (OBR) and Deutsche Bank regarding the job losses NICs changes would cause, with the former predicting 50,000 and the latter 100,000.
The fall will alarm those in the hospitality sector which according to the ONS employs over 5% of the UK’s workforce.
Chief Executive of UKHospitality, Kate Nicholls, views the policy change and its impact as an own goal for the government.
She said: “Losing more than 100,000 jobs across the economy in a month goes far beyond the worst-case scenario predicted by the Government’s own fiscal watchdog, major banks and countless business groups.
“We were clear at the time that the changes to NICs were a tax on jobs, and so it is sadly proving.
“At a time when we are all striving to grow the economy and help people back into work, the changes to NICs are acting as an anchor to the Government’s ambitions.
“Sectors like hospitality are the very sectors you need to create jobs in every part of the UK and for people of all ages, education and background, but hospitality and those working part-time are among the hardest hit by these tax increases.
“These shocking figures should make it abundantly clear to the Government that the changes to employer NICs are inflicting more harm than good, and they should be reviewed and reversed urgently.”
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