The budget’s annual release in March always creates headlines and causes controversy. And this year’s proved no different – and it also made for some thought provoking reading for the business owner looking to recruit in today’s job market. Learn what we think the effects might be of this particular budget.
A Million Jobs Promised and Employment Records Set
First for the easily digestible bit – more people than ever are employed. That’s wonderful! Additionally, the budget summary stated that: “Data confirms we have the lowest proportion of people claiming out-of-work benefits since November 1974”. Employment levels are sky high and more people are in work than ever.
Celebrations for Businesses
There was more good news on the employment front – and UK businesses for that matter as George Osborne stated: “Since the Autumn Statement just four months ago, the businesses in our economy have created over 150,000 more jobs than the OBR expected”.
So bearing the above findings in mind, with more jobs, and less people to fill them, the candidate now has more power as we have previously reported; if you’re looking to hire, hiring sooner rather than later might be a smart move.
The Chancellor promised a crackdown on tax avoidance schemes by PLCs which is predicted to raise £9billion, £7billion of which would be passed back down to small firms.
However, although this seems to be good news, another consideration put forward is that making things more challenging for UK PLCs might lead to instability, additional cost and limited training budget, meaning employees of a PLC no longer receive the training they need to perform in their roles at their best, reducing performance.
The Chancellor also promised to introduce a lifetime ISA to encourage and help people start saving for their retirement from a young age. However, for the small business owner looking to recruit, they are already being hit with an abundance of new policies such as pension auto-enrolment, the upcoming apprenticeship levy, the new living wage and changes to tax exemptions. Adding more responsibility and policy may deter small businesses from recruiting staff, despite the growing economy.
What We Think
A lot of what we’ve read is speculation, and if we drill down to the facts, we can see the job market is flourishing – so much so that candidates are in short supply. And for this reason, we think it’s a wonderful market full of opportunity for today’s small businesses. But with regards to recruitment, owners need to move fast!