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Will the National Insurance Tax Rise Cost Jobs? | Economics Explained

Big changes are coming to UK businesses — and they could impact thousands of jobs. From April 2025, employers will face a National Insurance hike from 13.8% to 15%. That might not sound huge, but when you’re employing staff across sectors like retail, hospitality, and healthcare, those costs can quickly add up. This tax rise is expected to bring in over £25 billion — but at what cost to employment and wages? Will businesses cut back on hiring, freeze pay, or pass on the costs to consumers through higher prices? In this video, we’ll break down the economic theory and real-world implications of rising employment costs, exploring marginal costs, labour markets, wage dynamics, and more. Essential viewing for anyone prepping for their 2025 exams!" 🧠 Key Concepts Covered: Employer National Insurance Contributions (NICs) Labour market impacts Marginal cost of labour Real wages Employment elasticity Government revenue and fiscal policy Cost-push inflation Profit margins and price-setting behaviour 🛎️ "If you found this video helpful, don’t forget to like, subscribe, and hit that notification bell so you never miss an update from tutor2u. Whether you’re an Economics student or teacher, we’ve got you covered with everything you need to succeed in your exams!" 🏷️ Hashtags: #exams2025 #examsuccess #economics #economicssuccess #ukeconomy #topgrades #microeconomics #tutor2u #EconTeachers #AQAeconomics #EdexcelEconomics #OCRAeconomics #WJECeconomics #CCEAeconomics #IBEconomics #EdecelAlevel #Eduqas #fiscalpolicy #nationalinsurance #jobmarket #labourcosts #minimumwage #realwages #costpushinflation #macroeconomics #marginalcost #governmentrevenue