More needs to be done to boost the UK’s fragile labour market due to impending burdensome employment rules, according to Paul Venables, group finance director at Hays.

Venables’ comments follow British Chamber of Commerce predictions that forthcoming employment regulations and taxes will hit the UK with a bill of £25.6bn, hampering job creation and recovery.

David Frost, director general of the BCC, said that employers need to get on with creating jobs and wealth recommending the abolition of a planned increase in National Insurance.

And Venables says the planned increase in taxes and greater employment regulation could not come at a worse time for the UK economy. 

“The implementation of Agency Workers Directive (AWD) could reduce the flexibility of the temporary job market and, coupled with increased NI contributions for employers, it is providing a tougher labour market and is likely to lead to an increase in the level of unemployment. 

“We are currently seeing some stability in the UK recruitment market, but it is still very fragile, and the goal must be to provide an environment that will encourage recovery of the labour market.”