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. More →

A survey of more than 2,000 employers conducted by the CIPD reveals that nearly four in five anticipate increased employment costs as a result of the Employment Rights Bill’s proposed measures, and nearly a third are planning on reducing headcount as a result. The measures include reforms to Statutory Sick Pay, changes to unfair dismissal rules, and the introduction of guaranteed hours for zero-hours contract workers. Among those expecting costs to rise, 30 percent foresee reducing their workforce through redundancies or cutting back on recruitment, while 23 percent plan to introduce or expand automation to offset expenses. Other strategies being considered include reducing training budgets (22 percent), cutting staff working hours (17 percent), or increasing reliance on temporary workers (17 percent). More →