Rising labour costs threaten job opportunities for young people

Summarised from 2 outlets · Updated 13 Oct, 00:20 · Archive

Rising employment costs are deterring firms from hiring and training young people, a survey finds.

Rising labour costs are holding back job opportunities for young people, a Confederation of British Industry survey has found. The poll of 682 firms, conducted between August and September, found that 73% cited employment costs as the highest threat to the UK labour market's competitiveness. Only 15% of firms surveyed said they were confident about hiring, down from 24% in 2025.

The survey found that 44% of companies said rising recruitment and onboarding costs were pushing them towards experienced profiles, reducing entry-level openings for young people. Additionally, 53% of firms said wider cost pressures mean they are offering fewer apprenticeships than they would like to. Employment regulations were also identified as putting pressure on firms' ability to create job and training opportunities.

CBI chief executive Rain Newton-Smith said the findings were a 'clear signal' of the reform needed across the labour market, and called on the Government to use the autumn Budget to rebuild firms' confidence. An estimated 981,000 young people aged 16 to 24 in the UK are not in education, employment or training, according to the latest Office for National Statistics figures.

How it is being reported

• Priced out of work: Just one in seven firms is confident about hiring as employment costs soar under LabourThe rising cost of employment is holding back living standards and hitting job opportunities for the young, business leaders have warned.This is Money · 13 Oct, 00:01
• Rising labour costs threaten job opportunities for young people, survey findsA poll found rising labour costs and employment regulations were putting pressure on firms’ ability to create job and training opportunities.Evening Standard · 13 Oct, 00:01

In this story: Confederation of British Industry · Rain Newton-Smith · United Kingdom · Office for National Statistics

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem