Bosses responded ‘immediately’ to the Autumn Budget with job cuts, data shows

Bosses appeared to ‘respond immediately’ to the Chancellor’s autumn budget by cutting staff, data from Employment Hero’s SmartMatch Salary Report shows.

Rachel Reeves’s £25bn National Insurance raid on employers has been criticized by some companies, which will pay 1.2 per cent more per employee from April.

British businesses will also face an increase in the national minimum wage.

According to Employment Hero’s survey of 90,000 workers, full-time employment shrank by 1.2 percent in November, with younger workers hardest hit.

The HR software company said 4.8 percent fewer 18-24 year olds were working full-time last month compared to October, compared to a 0.5 percent month-on-month decline for 35-44 year olds.

This follows data from the Bank of England on Thursday which showed that 54 percent of businesses are likely to cut staff and increase prices in response to the autumn budget.

The bank’s figures also showed that 38 percent would pay lower wages and 59 percent would absorb some of the blow in the form of lower profits.

Employment Hero data showed a decline of 0.1 percent across all job types and age groups, although this was likely offset by seasonal hiring as part-time work was 0.3 percent higher.

Kevin Fitzgerald, chief executive of Employment Hero UK, said: ‘These figures show that the disastrous decision to tax employment is already costing jobs.

‘The 4.8 per cent decline in full-time employment among 18-24 year olds is particularly worrying as it suggests employers are pulling back on bringing new talent into their organisations.

‘We are seeing these employment cuts months before the NIC increase even takes effect, indicating that companies are taking preventive measures to protect their bottom line.

‘While some workers may move to part-time jobs, this is not a sustainable solution for the UK economy.

‘The government must seriously reconsider this policy before it causes lasting damage to employment, especially for young people entering the labor market.’