FSB survey suggests unemployment to rise by 50,000 as result of NICs rise

16 Sep 2021

A survey carried out by the Federation of Small Businesses (FSB) has suggested that the UK unemployment rate could rise by 50,000 as a result of the increase in national insurance contributions (NICs) for employers, sole traders and employees.

The FSB carried out an assessment of the potential impacts of the 1.25% increase in NICs for employers, sole traders and employees and found that 50,000 more people could be left out of work.

The business group also warned that the impact could be even greater with the end of the Coronavirus Job Retention Scheme (CJRS) approaching.

'The government's regressive jobs tax hike will put jobs at risk, stifle start-ups and prevent new jobs from being created,' said Mike Cherry, National Chair of the FSB.

'It could mean 50,000 more people out of work after it takes effect in April. That means 50,000 livelihoods harmed – 50,000 people who would otherwise be at work in our economy.

'Combined with other rising employment costs – and firms having to make tough decisions about the futures of those who have been supported by the job retention scheme – that 50,000 figure could easily end up being a good deal greater.'


xero quickbooks.png sage.png kashflow.png
Copyright

© 2025 Mark J Rees LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
0116 2549018

Address
Mark J Rees LLP, Granville Hall, Granville Road, Leicester, Leicestershire LE1 7RU

Mark J Rees LLP is a Limited Liability Partnership Registered in England & Wales Number OC362074. A list of members’ names is available at the business address. MJR and Mark J Rees are trading styles of Mark J Rees LLP which is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales and authorised and regulated by the Financial Conduct Authority.

‘Partner’ refers to a director of a corporate member.