09 Jun 2025
The number of employers expecting to increase staff numbers in the next three months has fallen to a record low outside of the pandemic, according to research from the Chartered Institute of Personnel and Development (CIPD).
One in four employers plan to make redundancies in the next three months, the report added.
A survey of 2,000 businesses found issues such as rising employment costs and growing global uncertainties.
The CIPD said the rate of employers expecting to increase headcount has fallen sharply among large private sector employers and in retail in particular.
James Cockett, Senior Labour Market Economist at the CIPD, said:
'From April, employers across the UK have begun to feel the full effect of increases to National Insurance Contributions and the National Living Wage outlined in last year's budget.
'They're also looking at the potential impact of the Employment Rights Bill on employment costs and plans, and this comes at a time of global uncertainty. Employer confidence is low, which is being reflected in their hiring plans.
'The Employment Rights Bill is landing in a fundamentally different landscape to the one expected when it formed part of the Labour manifesto in summer of last year.
'It was always going to be a huge change for employers but they're operating in an even more complex world now. It's vital the government works closely with employers to balance the very real risk of reductions in investment in people, training and technology with their desire to reduce poor employment practice.'
Internet link: CIPD