Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Jobless rate set to rise’ as experts warn of National Insurance hike impact

by November 6, 2024
November 6, 2024
Jobless rate set to rise’ as experts warn of National Insurance hike impact

Experts from the National Institute of Economic and Social Research (NIESR) have cautioned that the recent increase in employers’ national insurance contributions (NICs), announced in Chancellor Rachel Reeves’ budget, will likely lead to higher unemployment.

NIESR has described the NICs increase as a “tax on jobs,” warning that it will curb job creation and slow vacancy growth.

The budget, which raised employer NICs by 1.2 percentage points to 15% and lowered the threshold for employer NICs liability to £5,000, is expected to generate £26 billion for the government. However, economists suggest that reduced wage growth and job opportunities could cut the anticipated tax yield to around £16 billion.

Stephen Millard, NIESR’s deputy director for macroeconomic modelling and forecasting, highlighted that the NICs hike would “reduce job creation,” contributing to rising joblessness over the next few years. Lower-income households are expected to feel the greatest strain, as inflation remains high and tax threshold freezes impact their disposable income. Adrian Pabst, NIESR’s deputy director for public policy, suggested that raising income tax for top earners rather than freezing personal tax thresholds would better support the living standards of lower-income families.

The budget’s tax changes and increased borrowing by £28 billion annually have triggered volatility in the UK bond market, with the latest 10-year government bond auction seeing its weakest demand in nearly a year. Despite a higher yield of 4.475%, investors showed limited interest, reflecting anxiety over rising government debt levels.

NIESR predicts inflation will rise to over 3% early next year, leading the Bank of England to take a cautious stance on rate cuts, with a predicted 0.25% reduction at its upcoming meeting. The Bank is anticipated to implement a few quarter-point cuts through 2025, with interest rates stabilising at around 3.25%.

As inflation and economic uncertainty continue to weigh on UK growth, the think tank projects minimal growth of 0.9% in 2024, increasing slightly to 1.2% in 2025 and 1.4% in 2026. Unemployment, currently averaging 4.2%, is expected to edge lower before rising steadily over the coming years, reflecting the challenging economic landscape.

Read more:
Jobless rate set to rise’ as experts warn of National Insurance hike impact

0
FacebookTwitterGoogle +Pinterest
previous post
Electric car prices slashed as manufacturers push to meet zero-emission targets
next post
Supporting Employee Health and Wellbeing Through Digital Health Solutions

You may also like

What is a retail experience agency and how...

October 17, 2023

How Profitable Is It to Run a Casino...

October 10, 2022

F1 design legend Adrian Newey joins Aston Martin...

September 10, 2024

How To Navigate Success With Employee Engagement Benchmarks

April 9, 2024

Wells Fargo Fires Employees Using Mouse Jigglers to...

June 14, 2024

SME’s embrace open banking payment technology

April 3, 2023

Future-oriented technology – artificial intelligence in translation software

August 17, 2022

Stagnant Income Growth Leaves UK Households Struggling, Reports...

June 28, 2024

Getting To Know You: Duncan Kreeger, Founder, TAB

July 17, 2024

Oracle NetSuite unveils new innovations to help businesses...

October 17, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved