UK employers will cut jobs after the budget, official data shows

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UK employers cut headcount even as the Labor government’s tax-raising budget boosted wage growth, official data showed on Tuesday.

Payrolls fell by 0.1 per cent in the October to November period and were 11,000 lower in the three months to November than in the previous quarter, the Office for National Statistics said. A figure shows.

Earlier estimates for December pointed to a bigger month-on-month decline in the payrolls of 47,000 to 30.3 million.

At the same time, average weekly earnings in the three months to November were 5.6 per cent higher than a year earlier, including and excluding bonuses, the ONS said. Economists expected 5.2 percent.

The figures come amid evidence that economic growth has slowed following Rachel Reeves. October budgetBusinesses are under pressure from a £40bn tax hike.

A rise in employers’ National Insurance contributions and a rise in the minimum wage have led some sectors to increase spending significantly as they take action in April.

Studies show that businesses try to offset higher costs by cutting jobs, squeezing wages, or charging higher prices to consumers.

The figures showed last week UK GDP rose slightly by 0.1%. Examining economists’ forecasts after mild contractions in November, September and October.

The ONS’s survey-based measure of employment also showed the unemployment rate rose to 4.4 per cent in the three months to November, up from 4.3 per cent previously, although this measure has recently been unreliable.