A recent CIPD report highlights a concerning trend: employer confidence in the UK has hit a record low due to rising costs and legislative changes. With significant drops in expected headcount increases, businesses are grappling with uncertainties that could impact their workforce planning.
Key Points
- The number of UK employers anticipating an increase in headcount has fallen dramatically, according to the CIPD.
- The net employment balance (NEB) has decreased from +13 to +8, marking the lowest point since 2014, outside of the pandemic.
- 24% of employers reported plans for redundancies in the coming months, an increase from 21% last autumn.
- Retail and education sectors are particularly impacted, with NEB figures dropping significantly in these industries.
- Large private sector employers have shown the steepest decline in the expectation of hiring.
Why should I read this?
This article dives into the shaky state of business confidence in the UK, which could have far-reaching implications for employment and workforce planning. If you’re an employer or HR professional, understanding these trends is key to navigating the challenges ahead. We’ve done the legwork for you—so grab a cuppa and catch up on what this means for you!