Gen Z wages and employment first to be hit by NIC hike last month

London, XX MAY: The youngest section of the workforce are feeling the brunt of the Government’s new jobs tax since its introduction last month, new real-time employment data shows.

Employment Hero’s Jobs Report uses real-time data from 105,000 employees across small and medium-sized businesses with 1-500 employees in the UK. 

Data from the end of April showed that Gen Z employment shrunk by 1.9% across the month.

This decline in overall employment was mirrored by a drop in wages – Gen Z workers saw their pay retract by 0.2% last month, while for part time/casual workers it dropped by 1.8%.

Pay grew for all other generations slightly.

Gen Z workers already earn considerably less than their Gen X and Gen Y counterparts, meaning the drop takes them further away from their older colleagues. 

Young men saw more of a decline than young women – with a 0.2% pay drop compared to a 0.1% drop for women.

But it was casual and part-time workers that faced the worst outcomes – with a -1.8% decline in pay in April, and a -4.5% drop across the quarter. 

Gen Z part time workers make an average (median) of £12 an hour, compared to £14.10 for the full-time workers in their generation.

These workers are concentrated in hospitality and retail roles, where pay dropped by 2.5% last month.

Kevin Fitzgerald, UK MD of Employment Hero commented:

“Gen Z workers are bearing the brunt of the Government’s National Insurance hike. We’re seeing a clear pattern where younger workers – especially those in part-time and casual roles within hospitality and retail – are experiencing both declining employment opportunities and shrinking wages. This creates a double burden on a generation already earning significantly less than their older colleagues.”

“The timing of this decline suggests businesses may be making tough staffing decisions that disproportionately impact their youngest and most financially vulnerable employees. For small businesses like cafes or stores operating on thin margins, even small increases in employment costs can trigger difficult choices about staffing levels and wages.”

“Young workers need more support during these challenging economic times, not additional barriers to employment. The Employment Hero Jobs app connects jobseekers with open roles in hospitality and retail – we help businesses find staff, and young people find work.”