Stamp Duty Stamping Down on Buying Power
Welcome back to the Recruitonomics newsletter! This week, we’re looking at the stamp tax in the United Kingdom, and how the property tax impacts the labor market.
Powered by Appcast, Recruitonomics.com is a hub for data-driven research that aims to make sense of our evolving world of work. Combining labor economics and recruitment best practices, Recruitonomics is constantly releasing new data and insights to bring clarity to the chaos of a changing economic landscape.
Insights from Recruitonomics:
Stamp Duty Leads to Less Affordable Housing and a Weaker Labor Market
Discussions about taxes aren’t always fun, but they are often necessary, especially given that some taxes affect the labor market and reduce long-term growth. In the United Kingdom, the stamp duty, a tax on buying property, is one of those harmful taxes. More specifically, the stamp duty is a tax that buyers need to pay for the acquisition of a residential property. Though first-time buyers benefit from a reduced rate, the threshold for that benefit recently decreased. Until March 2025, they only had to pay taxes on properties above £425k. But on April 1st of this year, the U.K. government lowered the threshold to just £300k. In a country with far too few housing units, the stamp duty is especially prohibitive. The result has been that workers, especially younger workers, are moving from large cities like London to more affordable regions, giving up those “good jobs” in the city that are highly productive and highly paid.
Read the full article here.
What does this mean for recruiters?
The U.K.’s housing unaffordability is uniquely bad amongst advanced economies. And recent changes to stamp duty have made matters worse. Workers are fleeing high productivity areas like London, where they are actually worse off after accounting for housing costs. From a recruitment perspective, companies could ease the burden on the housing market by offering more hybrid and remote roles.
Recruiting Tips:
A new crop of healthcare college graduates is about to step into the competitive healthcare labor market. While the rest of the labor market has calmed some, healthcare remains a hiring powerhouse, so attracting these students is vital for recruiting teams. Gen Z can be confounding, though, so we put together three tips for recruiting recent graduates in the healthcare industry. Learn more from Caitlan Wrona here!
Recently on Recruitonomics:
Recently, Recruitonomics came out with the second quarter Labor Market Snapshots. These quarterly reports cover seven key industries, exploring the state of the labor markets, wage growth, and recruiting in each. Utilizing both Appcast data and public labor market data, these reports are a unique look into the health of each individual labor market. Check out these reports if you are recruiting in:
Inside, you’ll find information on employment growth, key recruitment metrics like cost-per-click and application rates, and even forecasts of cost-per-applications for the six months ahead.
What Recruitonomics is Reading:
Weeks ago, the Federal Reserve decided to hold rates steady. This week, the minutes of that meeting were released, and they show that Fed officials fear stagflation in the months ahead. Stagflation—when prices surge while growth sputters—is a dangerous cocktail that could spell trouble for the labor market. The Fed is unlikely to cut rates through the summer, as officials remain concerned that higher trade barriers will impact prices for producers and consumers. You can read the full minutes from the Federal Reserve’s May meeting here.
More Data & Insights:
➡ The UK Labor Market Turns Sour Amidst a Surge in GDP
➡ Why the German Government Wants to Save Your Favorite Restaurant
➡ The Last “Before” Jobs Report?
Thank you for reading! Stay tuned for next week's Recruitonomics Newsletter and check out Recruitonomics.com for more data-driven insights.
