Sir Keir Starmer’s policies are “a hindrance” to hiring, employers have warned.
The boss of the Recruitment and Employment Confederation (REC) said the Prime Minister’s pledge to boost employment to 80pc and get 2m more people into work risked being undermined by his Government’s own policies.
It came as the REC published figures showing that job postings fell back to pre-pandemic levels last year. Only a handful of occupations saw an increase in job postings in 2024, while many suffered big falls.
IT was among the most badly affected sectors in what experts have branded a white-collar recession. The number of new postings for some roles in the sector almost halved compared to 2023.
Overall new job postings across the UK fell by 16.8pc between November and December to 550,982, as hiring slowed ahead of Christmas.
It follows an outcry from corporate Britain over a £25bn tax raid on employers by Rachel Reeves, the Chancellor, and an overhaul of workers’ rights that is adding billions of pounds to employer costs.
Neil Carberry, REC chief executive, said: “At the moment, government policy feels like more of a hindrance than a help in getting employment rates up.”
The full effects of the Budget on hiring may only become clear once figures for January and February become available. Mr Carberry said: “December is always a recruitment low point, so we will have to wait for January and February figures to judge where we are as firms return to the market in 2025.”
Mr Carberry said employers were hoping Ms Reeves would boost confidence when she updates the country on her plans for growth later this month.
The REC’s findings echo comments from the British Chambers of Commerce (BCC), which earlier this week warned that Britain has only seen the “tip of the iceberg” of the Budget’s impact on hiring.
Other surveys of hiring managers have shown the fastest contraction in private sector hiring since the financial crisis, outside of the pandemic.
Hiring has now been in decline for nearly three years after a post-pandemic boom. Mr Carberry said it was “surprising how few have noticed that the UK has just experienced its longest jobs market contraction since 2000.”
The REC’s data shows one of the few areas reporting solid growth in hiring is the public sector. Last year saw a 54.5pc rise in job openings for train drivers, who secured a 15pc pay rise in 2024. Government admin roles also rose slightly.