Younger and lower-paid workers hit hardest by rising labour costs, figures show

The UK’s services sector continued to struggle in December (Alamy/PA) -

Younger and entry-level workers are being squeezed the hardest by higher employment costs slowing the rate that firms are hiring, new analysis shows.

Some UK businesses have seen the cost of employing workers rise on the back of recent policy measures, including tax and minimum wage increases and reforms to employment rights, the National Institute of Economic and Social Research (Niesr) said in its latest economic outlook.