Employment Costs: Impact on Recruitment
What assessment he has made of the potential impact of employment costs on levels of business recruitment.
The UK was the fastest growing G7 economy in quarter 1 of this year, and we know that we will only achieve a thriving economy once people have a wage they can count on. We want to grow our economy with people in secure work. That is why we are giving greater certainty to more than half the UK’s workforce through our Employment Rights Act 2025 and putting more money in their pockets. External analysis by world leading experts shows that the Act could increase employment, and our impact assessment shows that it will benefit more than 18 million workers across the country.
The Employment Rights Act, the minimum wage and national insurance contributions are all making it difficult for employers to keep taking on new employees, or even to keep them at all. What advice does the Minister have for small business owners in Beaconsfield and Marlow having to make the difficult decision to either cut jobs or close their businesses thanks to this Government?
We are focused on fixing the issues in our labour market that the Conservatives neglected: poor working conditions, insecure work, inequality, the undercutting of good employers in brilliant SMEs, and the bad industrial relations that we inherited. Since July, real wages have grown. We have the third highest employment rate in the G7, and we are focused on backing our brilliant SMEs. They are the backbone of the community. I come from a small business family, and it provided me with that first job and opportunity. We want to get more people into work and to work with our SMEs, so that we can build that thriving economy where people have a wage so that they can get on.