Summer jobs slump as Labour's jobs tax bites

Telegraph

a day ago

The number of summer jobs on offer has slumped to a seven-year low as Rachel Reeves' job tax hammers bars, pubs and restaurants.
Seasonal vacancies have fallen to their lowest level since 2018, excluding pandemic years, according to the figures from Indeed.
It comes as hospitality businesses slash jobs in response to the Chancellor's increase in employers' National Insurance contributions (NICs), which took effect in April.
Kate Nicholls, chairman of UKHospitality, said: 'The NICs change was socially regressive and had a disproportionate effect on entry level jobs.'
Pubs, restaurants and other hospitality businesses have traditionally been a major source of casual work for students on summer holidays.
The findings will fuel concern about the prospects for young people. Graduate jobs have also been disappearing as many companies turn to artificial intelligence (AI) to complete the kind of tasks junior staff have typically done.
Graduate job postings in the 12 months to June are down 33pc compared to a year earlier, according to Indeed.
Matt Burney at Indeed said the decline in summer jobs reflected the weakening labour market more broadly, as jobseekers across the economy compete for fewer vacancies.
BDO's employment index slipped again in June, falling to 94.22 from 94.32 the previous month, marking a 13-year-low.
UKHospitality said 69,000 people had lost their jobs across pubs, restaurants and hotels since Labour announced its tax changes. The lobby group warned that more than 150,000 people would be likely to lose their livelihoods if the Chancellor refused to reverse the increase to employers' National Insurance contributions.
Kate Nicholls, chairman of UKHospitality, said: 'In the years following the financial crisis we created one in five net new jobs and today employ 3.5m people. The Government needs sectors like hospitality to create jobs and meet their ambition to get more people back into work.'
Meanwhile, further job losses are also expected in the City. The Confederation of British Industry (CBI) said financial companies were preparing to accelerate job cuts over the summer. A survey by the CBI found that activity across the financial sector fell at its sharpest pace in over a year in the three months to June.
Andrew Griffith, the shadow business secretary, said the 'damning' CBI report 'lays bare the impact of Labour's war on business.'
Of the summer jobs remaining, many were in educational roles. Summer associate, teacher and activity leader were amongst the most advertised positions in June, as companies fill roles for summer camps.
Mr Burney said: 'These jobs remain valuable for young people to gain practical experience in hands-on, business, or academic settings. While opportunities have declined, summer jobs haven't disappeared.'