Hiring expectations among UK employers are at a decade low, impacted by economic fluctuations and increased labour costs. The Chartered Institute of Personnel and Development (CIPD) reports a drop in net employment intention to just 8, the lowest in years, particularly among large private-sector firms and retailers. While some pay increases were noted due to new wage laws, overall pay growth is below historical averages. The cooling job market is reflected in a rise in job seekers and a decline in hiring across various sectors, especially permanent roles in the south of England.
Employers across the UK are scaling back hiring plans as rising labour costs and economic volatility take their toll, with new data showing workforce expansion expectations at their weakest level in a decade outside the pandemic.
The net employment intention - the difference between employers planning to hire and those expecting to cut jobs - has dropped to just 8. That's down from 13 in the previous quarter and the lowest figure recorded since the CIPD began tracking the measure in 2014.
Public-sector hiring remains sluggish too, especially in the education sector. Only 32 per cent of private-sector employers surveyed said they planned to increase staff over the next three months, while nearly a quarter (24 per cent) said they were preparing for redundancies.
The south of England experienced the most pronounced drop in permanent appointments, with London recording the smallest decline. While starting salaries increased - thanks to the April rise in national minimum and living wages - overall pay growth remains below historical averages.
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