UK Businesses Report Challenges Hiring Young People Due to Rising Costs

In Brief

Business groups say higher costs are limiting UK companies' ability to hire young workers.

Key Facts

• British companies are struggling to afford hiring young people after a period of rising costs.
• Business lobby groups told MPs that increases to the minimum wage and employer’s national insurance have impacted recruitment.
• Employers are reportedly avoiding the risk of hiring less-experienced workers due to financial pressures.

What Happened

Business leaders told MPs that UK companies are finding it difficult to hire young people, citing increased labour costs such as higher minimum wage and employer’s national insurance contributions.

Why It Matters

The reported reluctance to hire young, less-experienced workers could affect youth employment rates and the availability of entry-level opportunities in the UK. Based on a single source report

What's Next

Further discussions between business groups and policymakers may address these concerns, but no specific actions or proposals were detailed in the source.