Job openings in the have fallen to their lowest levels since 2020 as researchers blame for fuelling a lack of employer confidence.

Research conducted by recruiter Morgan McKinley shows that financial services job openings in the final three months of 2024 fell to their lowest level since the COVID pandemic when the UK economy temporarily shut down.

A separate Deloitte survey found that employer confidence had fallen to its lowest level in nearly two years, with hiring plans plunging to post-pandemic levels.

Both surveys blame the Chancellor's office, claiming that economic policies underpin the crisis as increased employment costs make companies reluctant to take on new staff members.

The shadow business secretary Andrew Griffiths labelled the lack of employer confidence as a "crisis made in Downing Street."

The surveys increase the pressure on the embattled Chancellor who is facing criticism after just months after her budget announced heavy tax rises for employers.

Mr Griffith said: "Survey after survey show that the Labour Budget has damaged business confidence and our economy.

"The Chancellor has made Britain more vulnerable because of her decisions.

"This is a crisis made in Downing Street and, sadly, it could get much worse for families across the country. Labour must set out how they are going to turn this around."

The Chancellor's budget announced increases in employment costs as an increase in the national living wage combined with increased national insurance contributions, a move seen by researchers as fuelling the crisis in confidence currently being seen.

Deloitte's survey of more than 60 financial chiefs found that optimism is at lows not seen since disastrous budget with many having to cut costs or raise prices in response.

Ian Stewart, chief economist at Deloitte, said: "With cost control to the fore in the wake of the Budget, CFOs have trimmed expectations for corporate investment, discretionary spending and hiring in the next 12 months."

Morgan McKinley's survey found that whilst job openings had begun to plummet prior to Reeve's budget in October, the drop had been exacerbated by her employer tax raids.

Mark Astbury at Morgan McKinley said: "The financial services sector in London suffered a contraction in 2024, with job availability plummeting.

"These stark figures paint a sobering picture of an industry grappling with mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption.

"The Budget's measures, such as the planned increase in employer National Insurance contributions, only exacerbate the strain on businesses, forcing many to implement hiring freezes or abandon growth plans altogether."

The Treasury has been contacted for comment.