Wakefield firms' plans to hire new staff at lowest level since pandemic says Mid Yorkshire Chamber of Commerce

The Mid Yorkshire Chamber of Commerce’s latest Quarterly Economic Survey (QES) shows that manufacturers’ hiring intentions dropped by 35 per cent in Q4 2024 when compared to Q3 figures, and the service sectors declined by 11 per cent.

The QES report also showed that sales were down across the board for manufacturers, reporting declines of 32 per cent (domestic) and nine per cent (overseas), meanwhile, though the service sector’s domestic sales were up by three per cent, overseas sales were down by 15 per cent in the final quarter of 2024.

Investment also took a hit in Q4 of 2024, with manufacturers’ investment plans declining by 47 per cent, and the service sector didn’t fare much better, with their investments down 29 per cent.

When asked what was contributing to such downturns, manufacturers cited labour costs (66 per cent), energy and utility costs (54 per cent), and the cost of raw materials (46 per cent). Service sector firms meanwhile reported taxation (93 per cent), labour costs (72 per cent), and inflation (59 per cent) as the most troubling factors for their businesses.

Martin Hathaway, managing director of the Mid Yorkshire Chamber of Commerce, said: “This latest report is unfortunately a disheartening read.

"While it is usual to see activity slow in the run up to the festive period, these declines also point to uncertainty after the Autumn budget.

"Increases to minimum wage and employer National Insurance contributions have undoubtedly hit businesses hard, with many clearly halting investments across the board, whether in recruiting new staff or purchasing new equipment, while they adjust to these increased costs.

“Looking ahead to what 2025 holds, I am hopeful that as the dust settles, we will see appetite for recruitment and investment grow.

"However, I do urge the government to keep the impact of these changes in the forefront of minds as we approach the next budget, our businesses need stability and confidence to enable them to thrive.”

Coun Denise Jeffery, leader of Wakefield Council, said: "Labour costs, price increases and new taxation expectations are the key concerns echoed across all businesses.

“It is, however, reassuring that willingness to train staff across both sectors has increased.

"And that the service sector has seen some modest increase in domestic sales. But I understand that it is an especially concerning time for our manufacturing sector.

“Our Enterprise and Inward Investment teams have been working closely with our local businesses. Now more than ever, it is important for us to support our key sectors to navigate a new economic landscape.

“I would like to end by noting that our region is always resilient. I have no doubt that by continuing the brilliant work delivered across our district, businesses will regain confidence in our economy.

"Growth forecast over the next couple of years remains positive and I am optimistic for what next year may hold.”

The data comes from the chamber’s s Quarterly Economic Survey (QES) which contributes to the national British Chambers of Commerce research, the UK’s largest and longest-running independent business survey.

It is used by policymakers such as the Bank of England and the Treasury.