11 hours Ago By Mike Sheridan
Watch more of our videos on ShotsTV.com and on Freeview 262 or Freely 565 Wage growth for UK workers hit 5.9% in the three months to December 2024, up from 5.
6% the previous month - putting more money in employees pockets. But businesses say wage inflation is making it harder to recruit, particularly in the wake of increases to employer based national insurance contributions and national minimum wage levels which came into force this month. Around 35,000 more people are in jobs than this time last year, according to the figures - but dropped by around 8,000 from the previous quarter, while the estimated number of vacancies in the UK fell by 26,000 on the quarter, down to 781,000 in January to March 2025.
The number of available vacancies is at its lowest level since 2021. The British Chambers of Commerce said a fall in vacancies on the quarter showed workforces "aren't growing" - adding that labour costs are forcing businesses to put up their prices. “ As wage growth continues to outpace inflation, and employer national insurance hikes come into effect, the rising cost of employment is a major challenge for employers across the UK," said Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce .
“In Greater Birmingham, our latest surveying suggests that more than half of firms are anticipating needing to raise their prices, citing taxation as their primary concern. “It will be some time before we fully understand the long-term impact of employer national insurance increases on jobs, investment and the extent to which businesses can absorb and adjust to rising costs. “The government must prioritise easing these mounting cost pressures on businesses, to enable investment and unlock economic growth.
“Looking ahead, the Employment Rights Bill continues to be a source of concern – while the government is consulting businesses, the legislation in its current guise threatens to impose further costs and complexities for employers to navigate.” The UK employment rate for people aged 16 to 64 years was estimated at 75.1% in December 2024 to February 2025, above estimates of a year ago, and up in the latest quarter.
Meanwhile the UK unemployment rate for people aged 16 years and over was estimated at 4.4% in December 2024 to February 2025. This is also above estimates of a year ago.
The number of people claiming benefits in the UK rose to 1.76 million..
