It’s not as if the Government weren’t warned of the consequences when they announced a rise in NICs and so it’s come to pass. UK unemployment figures jumped by 0.1 percent for the three months to March, as rising taxes impact the hospitality and retail sectors’ ability to employ new staff, while inflation continues to be driven up by the war in Iran.
Figures released by the Office for National Statistics have revealed that UK unemployment for the three months to March reached 5 percent, 0.1 percent up on the prior quarter, with the retail and hospitality sectors hit hardest.
The increase comes as the number of job openings fell by 3.9 percent to 705,000, the lowest level since April 2021, while the number of people on payrolls also dropped by 100,000 and average earnings growth dropped to 3.4 percent.
“The latest figures suggest the labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago,” said ONS’ director of economic statistics, Liz McKeown.
“Lower-paying sectors such as hospitality and retail have seen some of the largest falls in vacancies and payroll numbers, both in recent months and over the last year.”
Ben Harrison, the director of the Work Foundation at Lancaster University, said the rise in unemployment made life “particularly difficult” for young people.
The BBC added that separate research published by the Institute for Fiscal Studies on Tuesday shows “the current fall in youth employment rates is approaching the level of decline seen during the 2008 financial crisis and the Covid-19 pandemic.”
Stergides cites the squeeze
Bodies including the International Monetary Fund, UKHospitality and The King’s Trust have all called on the government to address the issue, with operators such as Electrocoin’s John Stergides dismissing the idea that the Iran war was solely to blame for rising costs.
“The truth is that firms are squeezed by the high taxes imposed by the Labour government. They are supposed to protect the working people, and instead they make sure they lose their jobs.”
Failure to protect
John Stergides Snr said… “The truth is that firms are squeezed by the high taxes imposed by the Labour government. They are supposed to protect the working people, and instead they make sure they lose their jobs…
Originally published on Coinslot on May 25, 2026. Republished with permission.