National Insurance rise 'could hurt UK labour market'

A forthcoming rise in National Insurance contributions could have a damaging effect on the UK's labour market, according to one expert.

The Recruitment and Employment Confederation's (REC) chief executive Kevin Green feels that the increase, which is due to come into force from next April, might negatively impact the recruitment plans of businesses.

He commented: "2010 is witnessing the first stirrings of a recovery in the labour market ... Increasing taxes on business will choke off recovery and will hinder getting people back into work."

The remarks made by Mr Green follow the publication of a petition which aims to encourage ministers to change their minds about the proposed National Insurance contribution rise.

REC is just one of the bodies that is behind the petition, with the likes of the Confederation of British Industry (CBI) also backing the document.

Firms in Northern Ireland and across the UK may be interested to note that the CBI's director-general Richard Lambert recently noted the potential importance of apprenticeships in dealing with youth unemployment problems.
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