The number of jobs offered by recruitment agencies could increase as a result of legislation introduced to encourage economic growth at new businesses.
Startups have been urged to ensure they take full advantage of a payment 'holiday' scheme that allows them to temporarily forego a percentage of National Insurance Contributions (NICs), Recruiter.co.uk reports.
According to Liz Longman, UK director of The Employment Agencies Movement, new businesses set up outside of London, the south-east and east of England, are eligible to save up to £5,000 in NICs for the first ten employees they hire during year one of their operations.
The move, designed to encourage economic growth and stimulate new jobs across the rest of the UK, was announced by the coalition government in its June Budget.
Speaking to the recruitment website, Ms Longman explained that the rules offer new businesses a great opportunity to recruit staff members without feeling the full effect of NICs.
"Client businesses setting up will offer more business to the [recruitment] sector," she told the news provider.
"This is a great opportunity for agencies to offer their services to a growing business attracting the right talent."
National Insurance is deducted from employees' earnings, but employers are expected to pay a percentage of the wage in Class 1 contributions and may also be eligible for Class 1A special-rate NICs if staff are given certain tax-deductable benefits, such as a company car.
Currently, employers are expected to pay 12.8 per cent on earnings above £110 per week to HM Revenue & Customs.
Meanwhile, employers will soon be expected to offer more job opportunities to single parents as a result of government legislation that will require people whose children are seven years or older to look for work from October.
In 2011, this threshold will be lowered to five years of age, in a move that could swell the UK workforce by a quarter of a million people.
Insight from Badenoch & Clark is here to help you make informed career and recruitment decisions. If you need help with a particular challenge, just ask. Contact us or check our latest jobs.
