Reeves Budget was not the catalyst for jobs creation that businesses needed

New survey data from CV-Library, one of the UK’s largest job boards, reveals a divided response from employers on the Autumn Budget’s impact on hiring. Of the 580 businesses and recruiters surveyed, 47% say the Budget will boost hiring, while 43% believe it will act as a barrier.

In a sign of the damage that the budget timing and constant speculation has had on business action, 87% of businesses paused hiring decisions ahead of the announcement. Yet only 39% now plan to resume hiring, with a further 36% continuing to hold off in the short term.

Cost pressures remain the central concern as 73% of businesses expect the Budget to increase employment costs.

63% said changes to the minimum wage and frozen NI thresholds would lead to an increase in part-time or temporary staff to try and mitigate the increased costs – particularly in labour-intensive sectors such as retail, logistics and hospitality.

However, when looking over the next 12 months, there was more positive news with businesses cautiously suggesting an increase in hiring. 36% indicated they would significantly increase hiring and a further 35% said they would slightly increase hiring.

Lee Biggins, Founder and CEO of CV-Library said, “Our survey results show that the Budget has not been the catalyst for jobs creation that businesses had hoped for.

“But there are signs that a period of relative stability and no new cliff-edge costs for businesses might start to see the hiring shackles start to come off as we move into the spring.”