UK employers are scaling back hiring plans to their lowest level outside the pandemic, according to the latest Labour Market Outlook from the CIPD. Just 61% of employers plan to recruit in the next three months, down from 64% last quarter and 67% in Autumn 2024. The drop is most pronounced among large private sector employers, where expectations to increase staffing have fallen from 39% to 32%.
The report’s Net Employment Balance (NEB), shows the difference between those expecting to hire and those expecting to cut jobs has declined from +13 to +8. The public sector has slipped into negative territory (from +3 to -4), while the private sector NEB dropped from +16 to +11, both record lows outside of the pandemic.
Retail and education are among the hardest-hit sectors. Retail’s NEB fell sharply from +23 to -19, with only 11% expecting to hire and 30% expecting reductions. In education, the NEB stands at -13 for compulsory and -7 for non-compulsory institutions. Redundancy plans remain high, with 24% of employers expecting job cuts, up from 21% last Autumn.
In light of these pressures, the CIPD is urging the government to work closely with employers when implementing the Employment Rights Bill to avoid adding strain to already cautious hiring plans.
Info obtained here
