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Deccan Herald
11-08-2025
- Business
- Deccan Herald
UK employers report weaker hiring and pay growth in July
Hiring intentions by British businesses fell to their weakest since the Covid-19 pandemic and recruiters said starting pay was rising at the slowest pace in over four years, according to surveys on Monday which add to signs of a weakening jobs market. With the Bank of England watching the jobs market closely, the Chartered Institute of Personnel and Development said only 57% of private sector employers planned to recruit staff over the next three months, the lowest since the start of 2021 though only slightly down from 58% in the last quarterly survey. The professional body for the human resources sector said higher employer social security charges introduced by finance minister Rachel Reeves and an increased minimum wage were hurting jobs, particularly in hospitality and social care. Planned changes to employment law which are likely to make it harder to sack employees in their first two years in a job were also making businesses more reticent to hire younger, less experienced staff, CIPD economist James Cockett said. Other business surveys have shown similar concerns, as well as broader headwinds from weak domestic demand and residual uncertainty for some exporters over U.S. trade tariffs.
The Star
11-08-2025
- Business
- The Star
UK employers report weaker hiring and pay growth in July
LONDON: Hiring intentions by British businesses have fallen to their weakest since the Covid-19 pandemic and recruiters say starting pay is rising at the slowest pace in over four years, according to surveys, which add to signs of a weakening jobs market. With the Bank of England watching the jobs market closely, the Chartered Institute of Personnel and Development (CIPD) said yesterday only 57% of private sector employers planned to recruit staff over the next three months, the lowest since the start of 2021 though only slightly down from 58% in the last quarterly survey. The professional body for the human resources sector said higher employer social security charges introduced by Finance Minister Rachel Reeves and an increased minimum wage were hurting jobs, particularly in hospitality and social care. Planned changes to employment law which are likely to make it harder to sack employees in their first two years in a job were also making businesses more reticent to hire younger, less experienced staff, CIPD economist James Cockett said. Other business surveys have shown similar concerns, as well as broader headwinds from weak domestic demand and residual uncertainty for some exporters over US trade tariffs. Official data due today is likely to show the jobless rate in the three months to June held at 4.7%, close to a four-year high, according to a Reuters poll of economists who will be watching to see if pay growth slows as the Bank of England (BoE) expects. Four of nine BoE policymakers opposed its quarter-point interest rate cut to 4% last week and they are likely to need further convincing that domestic inflation pressures are easing. CIPD members expected to raise pay by a median 3% over the coming year, unchanged from the previous five quarters. Separately yesterday, the Recruitment and Employment Confederation (REC) said growth in starting salaries in July was the weakest since March 2021 while pay for temporary staff grew by the least in five months. 'Economic uncertainty, the complexities of artificial intelligence adoption and global headwinds are all weighing on business planning,' said Jon Holt, group chief executive at accountancy firm KPMG which sponsors the REC survey. REC said higher payroll costs and weak confidence contributed to a steep fall in permanent appointments in July. — Reuters
Business Times
11-08-2025
- Business
- Business Times
UK employers report weaker hiring and pay growth in July
[LONDON] Hiring intentions by British businesses fell to their weakest since the Covid-19 pandemic and recruiters said starting pay was rising at the slowest pace in over four years, according to surveys on Monday which add to signs of a weakening jobs market. With the Bank of England watching the jobs market closely, the Chartered Institute of Personnel and Development said only 57 per cent of private sector employers planned to recruit staff over the next three months, the lowest since the start of 2021 though only slightly down from 58 per cent in the last quarterly survey. The professional body for the human resources sector said higher employer social security charges introduced by finance minister Rachel Reeves and an increased minimum wage were hurting jobs, particularly in hospitality and social care. Planned changes to employment law which are likely to make it harder to sack employees in their first two years in a job were also making businesses more reticent to hire younger, less experienced staff, CIPD economist James Cockett said. Other business surveys have shown similar concerns, as well as broader headwinds from weak domestic demand and residual uncertainty for some exporters over US trade tariffs. Official data due on Tuesday is likely to show the jobless rate in the three months to June held at 4.7 per cent, close to a four-year high, according to a Reuters poll of economists who will also be watching to see if pay growth slows as the BoE expects. A NEWSLETTER FOR YOU Friday, 3 pm Thrive Money, career and life hacks to help young adults stay ahead of the curve. Sign Up Sign Up Four of nine BoE policymakers opposed its quarter-point interest rate cut to 4 per cent last week and they are likely to need further convincing that domestic inflation pressures are easing. CIPD members expected to raise pay by a median 3 per cent over the coming year, unchanged from the previous five quarters. Separately on Monday, the Recruitment and Employment Confederation said growth in starting salaries in July was the weakest since March 2021 while pay for temporary staff grew by the least in five months. 'Economic uncertainty, the complexities of AI adoption and global headwinds are all weighing on business planning,' said Jon Holt, group chief executive at accountancy firm KPMG which sponsors the REC survey. REC said higher payroll costs and weak confidence contributed to a steep fall in permanent appointments in July. REUTERS
Daily Mirror
12-05-2025
- Business
- Daily Mirror
1 in 4 employers plan job cuts as Rachel Reeves taxes hit
A perfect storm for businesses has tanked the number of companies planning to hire more people April saw Labour's increase on taxes for employers combined with global market uncertainty when President Donald Trump started dealing out tariffs. The perfect storm has drastically swayed hiring and firing decisions within businesses at large, a new survey has found. One in four employers plan to make redundancies in the next three months and the number of employers planning to hire more people this summer has dropped to a record low only surpassed by the pandemic. The retail sector could be especially affected. This is higher than the 21% recorded in Autumn. The Chartered Institute of Personnel and Development (CIPD) surveyed 2,000 businesses as part of its latest Labour Market Outlook report. The report also found 27% of employers had a redundancy programme in the last 12 months and half offered enhanced packages above and beyond what the law requires. Employers with less than 250 workers were far more likely to offer the statutory redundancy pay. Only one in 10 retail employers plan to increase staff levels over the summer while 30% expect a drop in staff numbers, reports the Express. In response to these staggering figures, the CIPD is urging the government to 'consult with employers and business bodies to limit the potential impact the Employment Rights Bill could have on employer's hiring plans as businesses face mounting external pressures'. James Cockett, senior labour market economist at the CIPD, said: '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.' Andrew Griffith MP, Shadow Secretary of State for Business and Trade, said: "Alongside making families £3,500 worse off, Labour's Jobs Tax is crushing confidence, killing jobs, and pushing employers to the brink. Under Labour, the economy has flatlined and with businesses under mounting pressure, things can only get worse. "This report only confirms what we hear daily from the shop floor to the boardroom: confidence has collapsed. Labour can't understand why, because their cabinet has zero business experience.' A Treasury spokesman told the outlet: 'In a period of global uncertainty this government is delivering stability for business. Trade deals with India and the US show the benefits of our cool-headed diplomacy. 'We have provided business rates relief, capped corporation tax, and are protecting the smallest businesses from the employer National Insurance increases. And we've now seen four interest rate cuts since July, making it cheaper for businesses to borrow.'
The Independent
11-05-2025
- Business
- The Independent
One in four employers plan to make redundancies in next three months, report claims
The number of employers expecting to increase staff numbers in the next three months has fallen to a record low outside of the pandemic, new research suggests. 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 Chartered Institute of Personnel and Development (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.' It comes as the number of candidates for advertised jobs has increased substantially, according to recruiters. The recent increase was largely because of job losses amid company restructuring efforts and redundancies, as well as a reduction in recruitment activity, according to research among 400 recruitment agencies. Demand for staff weakened in April, said the Recruitment and Employment Confederation (REC) and KPMG. Neil Carberry, REC chief executive, said: 'Given the wave of costs firms faced in April, maintaining the gradual improvement in numbers we have seen over the past few months is on the good end of our expectations. 'While we are yet to see real momentum build, hopes of an improving picture in the second half of the year should be buoyed by today's data. 'The biggest single drag factor on activity right now is uncertainty. Some of that can't be helped, but payroll tax costs and regulation design is in the Government's gift. 'Businesses have welcomed positive discussions with ministers on the Employment Rights Bill, but now it is time for real changes to address employers' fears and boost hiring. 'A sensible timetable and practical changes that reduce the red tape for firms in complying with the Bill will go a long way to calming nerves about taking a chance on someone.'
