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Cost of hiring young workers is set to jump by nearly £5,000 a year under Labour, three times inflation

Rachel Reeves doing a shift at McDonald's, as the British Chambers of Commerce warns total employment costs have risen roughly 70% over the last decade.
Rachel Reeves doing a shift at McDonald's, as the British Chambers of Commerce warns total employment costs have risen roughly 70% over the last decade.
A data graphic showing that close to a million young people currently sit outside education, employment or training as employer costs surge.
A data graphic showing that close to a million young people currently sit outside education, employment or training as employer costs surge.

The Centre for Policy Studies think tank calculates that hiring costs for 18-to-20-year-olds will reach £20,511 a year by April 2027, up from £15,652 in 2024 — a 31% rise driven by minimum wage hikes and Rachel Reeves's employer National Insurance raid. The findings come as close to a million young people sit outside education, employment or training.

Chancellor John Healey this week confirmed another minimum wage rise, pushing the 18-20 rate from £10.85 to £11.27 an hour from April 2027.

The CPS warns that rising employment costs have already triggered falls in job vacancies and a surge in youth unemployment.

The British Chambers of Commerce says total employment costs have risen by roughly 70% over the last decade due to tax increases and minimum wage hikes.

MoreThe SunCost of hiring young workers set to jump nearly £5,000 a year under Labour as taxes hammer businesses and hit job marketThe TelegraphCost of hiring minimum wage worker to climb by £4,000Daily Mail NewsCost of employing young people up by three times the rate of inflation under Labour - causing jobs slumpCity A.M.Minimum wage hikes push up cost of employing a single worker ‘by over £4,000’cps.org.ukAnnual cost of hiring minimum wage labour rises by over £4,000, CPS analysis shows
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