CIPD report | Employer confidence falls to record low as UK firms face rising costs

The number of UK employers expecting to increase headcount in the next three months has fallen to a record low outside of the pandemic, as they grapple with rising employment costs and growing global uncertainties.

This is according to the latest Labour Market Outlook report from the CIPD, which shows that the rate of employers expecting to increase headcount has fallen sharply among large private sector employers, and in retail in particular. In response, the CIPD is urging the government to closely 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.

This latest survey of 2,000 employers from the CIPD, the professional body for HR and people development, found that:

• The report’s overall net employment balance (NEB) – the difference between employers expecting an increase in staff levels and those expecting a decrease in the next three months – fell from +13 last quarter to +8 this quarter. This marks a record low, outside of the pandemic, since the CIPD began collecting this measure in 2014.

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