The number of new job listings in the UK has dropped by 23% in the last year, according to the country's biggest recruitment website. Employers warned that the drop revealed the extent of the "stark" economic challenges facing the UK after the government's National Insurance (NI) hike came into force this month, causing panic among businesses already grappling with "rising costs and market unpredictability".

Data shared with LBC from the job search website Reed.co.uk showed a 23% decrease in the number of jobs uploaded last month compared to March 2024. While the figures showed a slight rise on the number of listings in February, the news is unlikely to inspire economic confidence, especially after the rate of employer NI rose from 13.8% to 15% on Sunday, with payments now beginning when staff earn £5,000, down from £9,100. It comes after business owners were also hit by a 6.7% rise in the minimum wage on April 1.

Kate Nicholls, chief executive of UKHospitality, has warned that the NI increase will "hit businesses and workers right across the UK", including through "reduced staff and trading hours, prince increases and, in the worst case scenario, jobs lost".

Tariffs imposed by US President Donald Trump last week are also expected to propound the economic impact on struggling UK firms. The Conservatives and Liberal Democrats have both called on Labour to revoke the NI hike, suggesting that it risks "turning our high streets into ghost towns".

Michael Doolin, CEO of consultancy company Clover HR, said the 23% drop in employment listings "paints a stark picture of the current market challenges right across the UK".

He added: "The market's stickiness, where movement and opportunities are limited, has become more pronounced as businesses delay decisions on hiring and expansion.

"This hesitation stems from the financial strain of increased operational costs and the cautious approach many are adopting in response to fluctuating economic conditions."

Julie Fisher, CEO of the small business provider Simply Business, added that the increased tax burden had forced almost a quarter of small UK businesses to halt their hiring plans, with 16% cutting back on employee hours.

"The new financial year brings a wave of increased taxes for small businesses, forcing 43% to raise their prices once again, and 24% to scrap hiring plans," she said.

"Inflation is driving up costs for everything from supplies to energy, and it's harder for smaller firms to keep prices competitive.

"Most concerning of all, almost 20% of small business owners fear that they will have to close within a year if economic conditions don't improve. This could result in the loss of almost one million small and medium enterprises (SME) in the UK, with a devastating impact on local communities and the economy."

A Treasury spokesperson said: “We are a pro-business government, and we know the vital importance of small businesses to our economy and have already achieved a great deal in a short period of time, including protecting the smallest businesses from the employer National Insurance rise and late payments, protecting 250,000 retail, hospitality and leisure business properties from paying full business rates and capping corporation tax.

“We delivered a once-in-a-Parliament budget that took necessary decisions on tax to stabilise the public finances, including the NHS which has now seen waiting lists fall five months in a row.

“We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets."