Business lobby groups say ‘taking the risk’ of employing less-experienced workers is being avoided
British companies are struggling to afford to hire young people after a long period of rising costs that have hit profit margins and derailed recruitment plans, business leaders have said.
Rising labour costs including increases to the minimum wage and employer’s national insurance by the government have put young people at the back of the queue when employers consider recruitment, business lobby groups have told MPs.
They also warned that the Employment Rights Act threatened to make the situation worse if it discouraged employers “from taking the risk” of hiring young people with fewer skills or without a long track record in the workplace.
The British Chambers of Commerce (BCC) expects the unemployment rate to rise to 5.5% this year and said young people would be “disproportionately affected”.
