Unemployment has risen by nearly 24% since Labour took office

UK unemployment has risen by nearly 24% since Labour took office, say leading audit, tax and business advisory firm, Blick Rothenberg.

Mark Cunningham, a Partner at the firm, said, “The Office of National Statistics latest report shows unemployment has risen from 4.1% when Labour took office in July 2024 to 5.1% on Tuesday, an increase of around 24%.

“This is the sharpest rise in joblessness in several years and takes us back to levels last seen during the recovery from the pandemic.

“Businesses have been hit hard by Labour’s increase to employers National Insurance Contributions (NICs) and National Minimum Wage (NMW.) The wage increase has been counterproductive for young workers; almost 40% of 18–24-year-olds are now currently out of work.

“Overall, Labour’s policies have made it more expensive for businesses to employ people, this along with the growing use of AI, has led to hesitancy in hiring.”

Mark added, “While interest rate cuts and clarity following the Budget may offer some relief, and Government training schemes are welcome, they will take time to deliver.

“The labour market will continue to be subdued for a prolonged period without more immediate action, such as reconsidering the NIC rise to give businesses the financial headroom they need to cope with rising wages.”