Rachel Reeves dealt massive blow as 'jobs tax' sparks unemployment chaos

Rachel Reeves has been dealt a massive blow as figures show unemployment increased to 4.5% in the three months to March. The Office for National Statistics said on Tuesday (May 13) that the unemployment rate increased from 4.4% in the three months to February.

Helen Whately MP, Shadow Work and Pensions Secretary, said: "This is just the latest in a string of bleak economic figures for the Government – and they do not come as a surprise. Back in October, the OBR warned that Labour’s Jobs Tax would cost 50,000 jobs, yet they pushed ahead with it anyway.

"It is clear that Labour’s Jobs Tax and business rates hike are putting an intolerable burden on employers, and with Employment Rights Bill set to choke businesses in red tape, things are only going to get worse.

"It’s working people who are paying the price for Labour’s war on business. Jobs are being lost, wages are stagnating, and opportunities are drying up. Only businesses create jobs in the economy and Labour must listen to employers before it is too late."

Jack Kennedy, Senior Economist at the global job website Indeed, said the labour market slowed further in April as it was hit by the "double whammy" of a spike in tariffs-related uncertainty and a policy-driven hike in employment costs.

He said: "Though the trade situation has calmed somewhat, with the US-UK trade deal easing concerns in the most exposed sectors like cars and steel, general business confidence has taken a bruising lately.

"The concern remains that lingering uncertainty will drag on hiring, with questions over the shape of the government’s Employment Rights Bill presenting a further headwind to an already fragile recruiting landscape."

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