A poll of 266 business leaders by the CBI underlines the extent to which workers will be hit by employer tax rises, with 62pc saying they will respond by slashing hiring plans. Almost half said they will be forced to lay off staff, while 46pc are looking to delay pay rises for their workforce.
Change the price of employing someone and you’ll change the number of people employed.
Tough logic to follow there, eh?
Link to the above quote with video of Musk talking about it:
https://x.com/autismcapital/status/1847808836234797418?s=61&t=VX5cJ0-osgn_JSz7j-uowQ
Comes back to the incidence of “Employers” NI.
While it may initially be incidental upon the company, this results in reduced hiring of new workers and reduced increases of pay in existing workers. Over time you’d expect the incidence of a particular rise to be almost wholly incident on the workers.
If the labour market were tighter, then it would be harder to do this as workers would simply quit and go elsewhere or do something more remunerative.
Another downside of too much immigration (at the lowest end of the market) and too much reliance upon foreigners at the skilled end of the market (imported health workers and Indian outsourcing employees).