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.
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 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.'
Internet link: CIPD