Cost pressures are the recurring theme. The CIPD has called on the government to reverse the increase in employer national insurance contributions introduced by the previous chancellor and to cancel the planned abolition of age-based wage levels, arguing both changes make entry-level roles harder to justify. Separate research from the Federation of Small Businesses found that 32 per cent of small firms have cut training budgets because of higher tax bills, and a further 27 per cent reduced training due to spiralling labour costs. Employment costs were cited as a barrier to hiring apprentices by 28 per cent of small businesses.
The stall is reshaping entry points into the labour market. In London, advertised Band 5 nursing roles — the typical entry grade for newly qualified nurses — fell from 4,762 in 2019-20 to 1,533 in 2024-25, a decline of 67.8 per cent. Over the same period, university acceptances onto pre-registration nursing courses rose from 3,650 to 4,275, leaving almost three graduates competing for every entry-level post. The Royal College of Nursing describes the situation as an unprecedented employment bottleneck.