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British factories cut staff at the fastest pace in nearly five years last month as the government’s payroll tax increase began to push up their costs and demand at home and abroad was weak, a survey showed on Monday. But manufacturers also turned the most positive in six months as they hoped for a pick-up in the economy. in February.
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The survey is barely above the 50 dividing line between growth and contraction and adds to a run of lacklustre economic indicators since finance minister Rachel Reeves announced the biggest tax rises since 1993 in October. Investors are pricing in just two quarter-point rate cuts by the BoE in 2025 as inflation pressures remain sticky.
percent in the first quarter of 2025, the first retreat in eighteen months. This one-two punch of shrinking output and swelling costs leaves executives hungry for a lever that widens margins without hacking payroll. Recent corporate board meetings share one agenda item: survival in a stall.
Indeeds data shows a steady fall in vacancies through 2024 but businesses concerns about hiring have become sharper since finance minister Rachel Reeves announced a 25 billion pound ($32 billion) rise in employer payroll taxes in her Oct. Employers will likely continue with caution when it comes to hiring in 2025, Indeed said.
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HR, finance, sales and ops all operate on different systems, using different metrics, protecting different turf. Even within a single team, critical platforms like payroll, performance and learning systems dont talk to each other. Heres why: Organizational silos are alive and well. Tools are fragmented.
However, REC chief executive Neil Carberry saw signs that the drop in hiring was easing, even as employers faced up to higher social security contributions ordered by British finance minister Rachel Reeves which came into effect this month. Accountancy firm Deloitte said its gauge of consumer confidence rose by a marginal 0.3
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