Angela Rayner blasted over 'disastrous' policy after 'dire' unemployment figures

Labour has come under fire over its "disastrous" workers' rights overhaul and tax hikes after unemployment figures remained unchanged. The UK's jobless rate stuck at 4.9% in the three months to June, according to the Office for National Statistics. Shadow Business Secretary Andrew Griffith blamed the Employment Rights Act, which was championed by Angela Rayner. He also hit out at tax rises amid the hike in national insurance for employers.

Mr Griffith said: "These figures show a jobs market that's ground to a halt. Businesses are still absorbing the cost of Labour's disastrous Employment Rights Act and tax rises and the worst is still to come. Only the Conservatives have the team, the plan and the leader with the backbone to get Britain working again."

The Office for National Statistics (ONS) said its early estimates show there were around 6,000 fewer vacancies between May and July, compared with February to April.

This brings the level of vacancies down to 707,000, the lowest in more than five years or, outside of the Covid pandemic years, since 2014.

Vacancies slumped earlier in the year in a sign that firms were pulling back hiring in the face of economic uncertainty and higher wage costs.

The latest ONS survey found that small firms may not be recruiting because of increased labour costs and other business expenses.

The data also revealed that regular average wage growth in the UKs private sector fell to 2.8% in the three months to June the lowest level since the three months to October 2020.

Shadow Work and Pensions Secretary Helen Whately said: Todays figures show that changing the Prime Minister does not change the stark economic realities facing this country. Higher taxes means lower growth and fewer jobs.

The Welfare Secretary himself said every meeting he had with Labour MPs was about who they could tax more to pay for more benefits. Labour are simply the welfare party.

Only the Conservatives will cut welfare and get Britain working again.

Economist Julian Jessop, of the Institute for Economic Affairs think tank, described the figures as "dire".

He added: Britains labour market is continuing to show the strain of the rising costs of employment.

Businesses have been hit by higher employer National Insurance, a higher minimum wage and an expanding regulatory burden. It should be no surprise that employers are responding by hiring fewer people, cutting vacancies and holding down wages."

Work and Pensions Secretary Pat McFadden said: Weve already put in places reforms to get Britain working again. We've rebalanced Universal Credit to remove barriers that held people back from employment, and we're investing 3.5 billion in tailored employment support to help people with health conditions and disabilities move into work. We're also supporting businesses to hire young people through our Youth Jobs Grant.

We will continue to reform welfare and employment support so that more people can live independently and restore opportunity across the country.