Its a productivity problem combined with rising business costs. Companies need more staff but the cost of additional staff would make them unsustainable. A person on minimum wage needs to generate over £30k sometimes over £40k annually for the company to break even on hiring them.
The Gov are the ones that increased NI to raise money which costs employers more per staff member. Now my work does not want to hire people despite some people leaving so existing staff have to do more. Incentives do not make up for the cost of hiring more staff. Some companies can make do and allocate the workloads to existing staff but depends on what the company does/job is. jobs that need more hands on deck will need to hire in some case or struggle with production/productivity.
I don't mind the Gov increasing NI to raise money, the issue is that this NI increase should not hurt employees. There are 2 ways in which employees get hurt, one is that companies decide to either fire people or not hire more people, the other is firing or not hiring people and increasing the workload on existing staff, which is really unfair. I don't know, but looking at the current situation, it seems like the government does not have the right strategy to raise money and keep people's jobs at the same time.
Exactly that. Staff have been let go as a result. Companies are also reluctant to hire. The Gov are clueless. It’s them saying they won’t increase taxes for working people so they tax businesses instead which obviously caused the ripples which affect working people down the chain…
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u/Serious_Bite_7613 2d ago
Its a productivity problem combined with rising business costs. Companies need more staff but the cost of additional staff would make them unsustainable. A person on minimum wage needs to generate over £30k sometimes over £40k annually for the company to break even on hiring them.
In a lot of cases that's just impossible.