The decline in payroll jobs in May highlights the fundamental economic principle that higher employment costs result in fewer jobs. Since June 2024, the UK has witnessed a total reduction of 277,000 payrolled positions, influenced by factors such as increased National Insurance contributions and minimum wage hikes. The hospitality and retail sectors, most affected by these costs, have seen the steepest job losses. While public sector jobs in health and social work continue to grow, low productivity raises concerns. The current labor market cooling could facilitate further interest rate cuts by the Bank of England, but reflects broader economic weakness.
The fall in payroll employment serves as a reminder that increasing employment costs leads to a reduction in job availability, particularly in sectors vulnerable to these costs.
The UK jobs market is uniquely affected by global uncertainties and rising payroll costs, with significant job losses particularly evident in hospitality and retail sectors.
Collection
[
|
...
]