UK Employers Show Reluctance to Hire as Labour Market Confidence Falters
Current State of the UK Labour Market
LONDON, Aug 17 (Reuters) - British employers remain reluctant to hire and confidence has stayed near its weakest levels outside the COVID-19 pandemic, according to a survey published by the Chartered Institute of Personnel and Development (CIPD) on Monday.
The survey was published a day before official data is also expected to paint a weak picture of the labour market, something the Bank of England is watching as it considers its next moves on interest rates which have been on hold since December 2025.
Key Findings from the CIPD Survey
Employment and Hiring Intentions
• The CIPD's net employment balance held at +9, close to its lowest level outside the pandemic
• Private-sector hiring intentions remained at +11, matching a record low outside the pandemic
• 57% of private-sector employers plan to recruit in the next three months, also a joint post-pandemic low
Redundancy and Labour Market Trends
• Redundancy levels have not rise and CIPD sees "low-hire, low-fire" labour market
Pay and Recruitment Challenges
• Median expected pay rises remained at 3%, their level for more than two years
• 31% of employers had hard-to-fill vacancies and 14% expect significant recruitment difficulties in the next six months
Recommendations and Survey Details
• CIPD called for lower hiring costs and more support for youth employment
• The survey was based on responses from 2,017 employers between June 24 and July 24.
(Writing by William Schomberg, editing by Andy Bruce)