“UK employers brace for 2025 with rising costs and potential redundancies amid pending national insurance hike”.
You may be a leader in any organisation, but are you aware of the significant challenges ahead that face many organisations?
Following a tentative step into 2025 and now edging closer to the 1st April, the CIPD published their quarterly Labour Market Outlook report this week https://www.cipd.org/uk/knowledge/reports/labour-market-outlook/ The report is based on a survey of over 2,000 employers and offers valuable insights into the challenges and opportunities facing UK employers.
Below, I summarise my key observations of the report and if you feel you would welcome support in understanding how HR can assist your organisation in developing strategies to navigate the difficult considerations, then please contact Seton HR Solutions https://setonhr.co.uk
Recruitment trends
The report highlights a significant shift in employer sentiment due to impending changes in employment costs, particularly the increase in National Insurance contributions and the National Minimum Wage. These changes have led to a notable decline in hiring confidence, with many employers planning to reduce headcount or scale back recruitment efforts. Redundancy intentions have reached their highest levels in the last 10 years.
Pay growth and employment costs
Despite the challenging economic environment, pay growth remains a critical focus. The average expected basic pay increase for the next 12 months is 3%, with the public sector seeing a rise to 4%. Recruitment intentions are highest in the public sector at 78%, compared to 67% in both the private and voluntary sectors.
Government support
The report underscores the urgent need for government support to help businesses navigate these changes and employers are seeking accelerated plans around business support and skills policy to boost growth.
Looking ahead
As we move forward, the quarterly CIPD’s Labour Market Outlook serves as a crucial barometer for understanding the evolving dynamics of the UK labour market.
Employers must stay informed and adaptable to navigate the challenges and seize the opportunities that lie ahead and by having the support from an HR consultant can help you better prepare for the future.
Seton HR Solutions 