Labour's jobs crisis deepens as only one in seven firms is confident about hiring new staff

Only 15% of businesses are confident about hiring — down from 24% last year — as soaring employment costs push firms away from entry-level roles and towards experienced workers, a major CBI survey has found. Rain Newton-Smith, CBI chief executive, called the results a "clear signal" that the cost and confidence equation in the labour market must change before the autumn Budget. Nearly a million young people aged 16 to 24 are now not in education, employment or training, official figures show, with firms warning the squeeze is hitting the youngest hardest.

Some 73% of the 682 firms polled said labour costs — including the National Insurance hike and minimum wage rises — are the biggest threat to UK jobs competitiveness.

Nearly half of businesses say rising recruitment costs are pushing them towards experienced hires, shutting young people out of entry-level openings.

More than half of firms say wider cost pressures mean they are offering fewer apprenticeships than they would like to.