One in four employers plan to make redundancies in next quarter

13 May 2025

The number of employers expecting to increase staff numbers in the next three months has fallen to a record low outside of the pandemic, according to research from the Chartered Institute of Personnel and Development (CIPD).

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 to be causing the uncertainty.

The 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 (NICs) and the National Living Wage (NLW) 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.'