Fashion
Rising costs, Employment Rights Bill threaten jobs, growth: UK survey
Against a backdrop of falling vacancies and rising unemployment, business confidence in the UK labour market remains low.
The UK labour market is facing mounting pressures as businesses grapple with rising costs, regulatory changes and an increasingly challenging economic environment, the annual Confederation of British Industry-Pertemps Employment Trends Survey revealed.
Business confidence in the labour market is low.
Companies are warning that the cumulative cost of doing business is a major threat to competitiveness.
Companies are warning that the cumulative cost of doing business is a major threat to the United Kingdom’s current and future competitiveness with jobs, investment and future pay rises at risk.
Eight-six per cent of respondents believe the UK labour market is a less attractive place to invest and do business compared to five years ago, with 54 per cent ranking it as ‘much less’ attractive; 82 per cent expect this trend to continue.
Labour costs rank as the top threat to current labour market competitiveness and was selected by 73 per cent of respondents. The impact of employment regulation on flexibility ranked second (65 per cent), followed by access to skills (58 per cent).
The main drivers of concern about the cost of employing people are national insurance contributions (NICs) and costs coming from the Employment Rights Bill (selected by 69 per cent and 53 per cent of respondents respectively), a CBI release said.
Seventy-eight per cent believes the bill will hit growth, investment, jobs and discretionary employee benefits. This concern has grown since last year when half of firms (54 per cent) were worried.
Twenty-seven per cent of respondents expect their organisation will be smaller than it is today in twelve months’ time, slightly more than the proportion intending to grow (26 per cent).
Taken together, the increase in NICs and the past three National Living Wage increases add up to an additional cost of over £24 billion for businesses each year.
Seventy-three per cent respondents believe labour costs are a threat to current UK labour market competitiveness. This is the first time that labour costs have ranked as the top threat to labour market competitiveness since the question was first surveyed.
Sixty-nine per cent identify the recent NICs rise as one of the top three biggest cost threats to UK labour market competitiveness, followed by the implementation of the Employment Rights Bill (53 per cent).
Businesses want to see government build a consensus about how to deliver the Employment Rights Bill so that it supports growth.
The survey also highlights how the current approach to growth and skills levy reform is hurting businesses’ ability to invest in skills and deliver training. Sixty-seven per cent believe that the absence of a clear road map for eligible training courses will hinder workforce planning.
Half of the respondents believe that continued rigidity in the levy is stopping their organisation from being able to deliver training to address skills gaps.
Fibre2Fashion News Desk (DS)
Current account excluding gold and energy indicated net deficit of $3.9 billion, while goods saw a deficit of $9.5 billion.
Turkiye recorded a current account deficit (CAD) of $9.6 billion in March, the country’s central bank said.
Treasury and Finance Minister Mehmet Simsek said the CAD is expected to widen this year, due to high energy and non-energy commodity prices.
Simsek said the deterioration is likely to remain temporary and manageable, thanks to stronger macroeconomic fundamentals and policy gains.
According to annualised data, current account deficit recorded as $39.7 billion (2.6 per cent of gross domestic product) in March, while the goods deficit recorded as $77.8 billion.
Simsek said the deterioration is likely to remain temporary and manageable thanks to stronger macroeconomic fundamentals and policy gains, domestic media outlets reported.
Turkiye is heavily reliant on imported energy, whose prices spiralled due to the Middle East conflict.
Simsek said elevated global commodity prices would put pressure on the external balance, but emphasised that the government’s economic programme had improved resilience against such shocks.
He said foreign direct investment (FDI) inflows totalled $1 billion in March, bringing annualised foreign direct investment to $12.6 billion.
The new investment incentive package under discussion in parliament now is expected to strengthen the country’s financing structure and support long-term capital inflows, he added.
Fibre2Fashion News Desk (DS)
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Higher rents, utility bills and fuel prices are eating away at already thin profit margins, it found.
High inflation is cutting deep into Bangladesh consumer spending, with weak demand turning one of the biggest concerns for businesses, DCCI said.
Higher rents, utility bills and fuel prices are eating away at already thin profit margins.
DCCI’s economic position index revealed that consumers have sharply reduced spending as the cost of living continues to rise.
SMEs are feeling the pressure the most.
The chamber’s economic position index (EPI) revealed that consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers.
Small and medium enterprises (SMEs) are feeling the pressure the most as they struggle to manage higher operating costs without losing customers.
Businesses also cited difficulties in obtaining bank loans, while delays in licensing and other regulatory procedures are adding to costs.
The DCCI report identified a shortage of skilled workers, particularly in technical and customer service roles, as another challenge for the sector.
The country’s inflation rose to 9.04 per cent in April from 8.71 per cent in March, according to official statistics.
Fibre2Fashion News Desk (DS)
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