Another day in Starmer’s socialist paradise! 1,000 jobs A DAY are now lost under Reeves with experts warning the ‘madness’ of Labour policies will see the crisis get even WORSE

Rachel Reeves is accused of triggering a ‘job massacre’ with 1,000 workers being sacked a day.

According to official figures, more than 180,000 people ended up in workplace scrapyards in the UK last year; 64,000 of these arrived in the last two months.

A damning indictment of Labour’s economic policies, it was also the first time overall unemployment has reached 5 per cent since the Covid outbreak.

This comes at a time when there is a rise in the number of people on benefits who do not have to work at all; Four million people are currently kicking up their heels at home, with half the total number claiming Universal Credit.

On Tuesday the Chancellor was accused of causing the decline with a punitive £25bn national insurance raid on businesses.

He has also faced criticism for overseeing a rising public sector wage bill that has outpaced pay rises seen in the private sector, despite trying to plug a £30bn gap in public finances.

Experts now warn the ‘madness’ of Labour’s policies will make matters worse as bosses hold back from investing in staff for fear of a new tax grab in this month’s Budget.

They called on Ms Reeves to consider stopping any increase to the National Minimum Wage and called for Labour’s new Employment Rights Bill to be stopped.

Prime Minister Keir Starmer and his Chancellor criticized ahead of Budget

Conservative shadow chancellor Sir Mel Stride said: ‘These figures confirm a jobs carnage under Labor; 1,000 jobs are being lost every day as the budget approaches.

‘Keir Starmer and Rachel Reeves have taxed jobs, eroded business confidence and sent Britain back to epidemic-level unemployment. More tax increases are on the horizon.

‘More damage will come. Labour’s failure is no accident; It is the result of their choices.’

Tuesday’s dismal Office for National Statistics (ONS) figures revealed that alongside the fall in the number of people on payroll, unemployment has risen by 349,000, or 24 per cent, since Labor came to power last summer. The unemployment rate at that time was 4.1 percent.

And there was evidence that long-term youth unemployment was worsening. The rate of unemployed people aged 18-24 who have been unemployed for more than a year rose to 26 percent, the highest level since 2015.

Stubbornly high inflation is eating away at living standards even for workers; Excluding the impact of high prices and housing costs, wage growth in real terms falls to 0.5 percent, the weakest level since 2023.

Addressing the workplace accident, Alex Hall-Chen, Chief Policy Adviser for Employment at the Institute of Directors, said: ‘This decline is a direct result of the recent increase in employers’ National Insurance contributions and the upcoming Employment Rights Bill.’

He said the overall effect of the policies was that ‘hiring employees has become a costlier and riskier proposition for businesses’.

There are growing fears that Labor will break its manifesto promise by increasing income tax, despite threats that a falling jobs market will damage already slow economic growth.

Conservative Shadow Chancellor Sir Mel Stride (pictured) said the figures ‘confirm a jobs bloodbath’

And businesses face another blow if the Chancellor undermines so-called ‘salary sacrifice’ plans that would allow workers to reduce tax paid on contributions to their pension funds.

Simon French, chief economist at City broker Panmure Liberum, said it was ‘madness to press ahead with the rights bill and increase the national living wage above inflation at a time when the labor market is rapidly cooling’.

Yael Selfin, chief economist at accountancy firm KPMG UK, said: ‘Recruitment activity remains weak and survey evidence suggests additional uncertainty from the Budget is restraining activity as employers await details of any fiscal measures.’

Andrew Sentance, the Bank of England’s former rate setter, said the Chancellor was ‘warned last October that increasing employer NI (’employment tax’) would stifle job creation and increase unemployment’.

He added: ‘With an unemployment rate of up to 5 per cent, that is exactly what is happening and there is likely to be more bad business news to come as employers adjust to higher NI.’

Britain’s hospitality and retail sectors have been worst hit by the national insurance raid and on Tuesday Kate Nicholls, chief executive of trade body UK Hospitality, said the latest figures were a ‘shocking indictment of the damage caused’.

Liz McKeown, ONS director of economic statistics, said: ‘Taken together, these figures point to a weakening labor market.’

Conservative business spokesman Andrew Griffith said: ‘Labor ministers should hang their heads in shame.

‘The £25bn NI rise, falling business confidence and the relentless threat to union and workers’ rights have all contributed to unemployment rising to 5 per cent today.

‘Among the most affected young people, the ‘unemployed generation’ is now taking place under their watch.’

Responding to the ONS figures, Work and Pensions Secretary Pat McFadden (pictured) said the government was ‘accelerating our plan to get England back to work’.

The ONS figures, which are likely to increase pressure on the Bank of England to cut interest rates next month, caused sterling to lose value against the dollar and euro.

Responding to the ONS figures, Work and Pensions Secretary Pat McFadden said the government was ‘accelerating our plan to get England back to work’.

But the worsening employment figure only adds to the list of dismal economic figures the Chancellor faces.

The Bank of England predicted unemployment would continue to rise but did not expect it to reach 5 per cent until later this year.

Meanwhile, inflation remained stubbornly high at 3.8 percent, almost twice the Bank’s target level of 2 percent. Ms Reeves was also blamed for this, as national insurance increases were passed on to consumers as higher prices.

At the same time, overall economic performance has slowed.

Official figures to be announced on Thursday show that growth will slow down further in the third quarter of the year, falling to 0.2 percent.