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