NICs rise 'could damage umbrella contractor jobs market'

Posted on 2 March 2010

Published by Susie Lee-Kilgariff

The planned rise to employers' National Insurance Contributions (NICs) could negatively impact upon the UK labour market, it has been claimed.

According to Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), the one per cent increase, scheduled for April 2011, will increase the costs of hiring for many businesses and organisations.

He says the increase is "tantamount to a tax on jobs" and could reduce the employment opportunities available for jobseekers in the UK.

"2010 is witnessing the first stirrings of a recovery in the labour market with employers starting to feel more confident about recruiting," he stated.

"Increasing taxes on business will choke off recovery and hinder getting people back into work."

Employers' NICs had been scheduled to rise by 0.5 per cent in April 2011; however the chancellor of the exchequer Alistair Darling announced an additional 0.5 per cent increase in December 2009.

Links:

Recruitment and Employment Confederation

Categories: Finance for Contractors