> It said there was evidence that some firms may not be recruiting new workers or replacing people who have left.
I guess in isolation this would be fine if the economy was growing and people were starting new companies. Even if average number of employees decreased per company, an increase in startups (across all industries, like green energy, education, etc) would balance it out. But we have complete stagnation and lack of entrepreneurism.
[deleted] on
[deleted]
StoicRun on
“Private sector pay growth also edged down and remains below the public sector rate, which increased” – ONS statement today
And that, ladies and gentlemen, is what is going on here. I blame myself for voting Labour, but they’ve gone straight for the stereotypical tax the private sector and pay the public sector. Next step will to be to go after private sector pensions, whilst leaving public sector pensions unscathed.
Wage growth = inflation = higher interest rates. So enjoy those high mortgages for a little longer.
OkProMoe on
Maybe this means the government will invest in more start up businesses to increase employ…. Haha, just kidding. More taxes for the middle!!!
Scrapheaper on
I assume interest rates have to go down now, and then we get more inflation.
RemBoathaus on
It’s a lack of confidence – doesn’t look like Labour will actually be able to deliver their manifesto so businesses are playing wait and see. So we’ll get a competely manufactured recession.
Hopeful_Stay_5276 on
As someone who has recently returned from overseas and is desperately looking for a job; whatever the official statistics say, this is the quietest I’ve ever known the job market to be (excluding the lockdowns).
I’m genuinely worried I won’t be able to find something this time.
Stratix on
Almost everyone I know is unbelievably busy at the moment and constantly feels like they are short staffed.
I’m not sure when these efficiency gains we’ve been promised from AI are coming but I haven’t seen much evidence yet.
Sad to hear about the labour market though. I’m sure it’s unrelated.
beIIe-and-sebastian on
Sluggish growth, persistent sticky inflation, rising unemployment, low business confidence, weak consumer spending, slowing wage growth and rising job cuts. Stagflation on the horizon?
Cholas71 on
Go for growth by punishing employers. Led by donkeys, red or blue are just different cheeks of the same backside.
Additional_Bid2808 on
Who would have thought making it more expensive to employ people would reduce the amount of people employed
UseADifferentVolcano on
AI overviews in Google are stealing about 30% of informational traffic to websites. For years companies have been showcasing their expertise with content, and that content convinced people to give them a chance. But that isn’t happening anymore, meaning revenue for a massive variety of companies has dropped for seemingly no reason.
chronicnerv on
It’s also becoming increasingly clear that a growing share of job postings aren’t for real jobs at all. For some companies, it’s highly profitable to collect free data from applicants, CVs, work histories, and personal details, which can then be sorted, ranked, and even sold to recruiters or used later if a genuine vacancy arises.
Posting fake jobs also gives firms a ready-made database to verify future CVs for authenticity, while projecting an image of growth to outsiders. From a purely commercial perspective, there’s little downside for a private company unfortunately, the only people who lose out are the jobseekers whose time and data are being exploited.
BlondBitch91 on
This is a direct consequence of the chancellor increasing NICs. Companies are holding back on hiring additional staff because to do so could cost them any rates relief they had, and put an even bigger dent in their finances than before. It is far less worth it than before to hire additional staff unless you’re absolutely desperate and are certain that the additional work capacity will pay for the additional taxation burdens.
AirResistence on
Meanwhile the job centre and restart still requires people to apply for 30+ jobs a week.
I have been trying to tell them both for months that job vacancies are falling fast and to ask them if theres any courses or whatever that I can do to retrain so I can get out of this cycle and they look at me like im insane and insist everything is ok lol
Feeling_Pen_8579 on
We’ve just stopped recruiting anyone and are more aggressively pushing outsourcing, far too expensive to employ in the UK. Shame.
Lo_jak on
We’re in an economic downturn and have been for quite some time…. Things are only going to get worse for this year and next year. I haven’t seent he job market this bad since 2008 and that makes for some pretty grim reading if you ask me ! Wages are absolutely shocking, yet house prices are at all time highs, we have less services than we did back in 2008 and inflation is hammering food prices.
We are already in a recession imo and it will be official by Q4 of this year. If you have any debt that you can clear now would be a good time to do so.
AppointmentTop3948 on
Well, yeah. The government just dumped a bunch of taxes onto companies, making it more expensive to hire people.
We can all see what’s happening, here. Nothing in the budget had the likelihood of improving anything and the 20bn black hole has now turned into a 50bn black hole.
Everything the doomsayers predicted, wrt the budget, have come to fruition. This feels intentional tbh.
T_raltixx on
Tell me about it.
I’m going to lose my job within the next 2 years due to the company going under. I have chronic fatigue and fibromyalgia so my job choices are very limited. I’ve never seen the job market so bad. I’m terrified.
FewEstablishment2696 on
Since Labour have come to power:
Overall, employment is up, employment rate is up, economic inactivity is down and wages continue to grow faster than inflation.
There are 34,214,000 people employed in the UK, which is 238,000 (April to June 2025) higher than the previous quarter and 725,000 higher than the previous year – ONS August 2025 (Release date: 12 August 2025)
Unemployment is up slightly (59,000 higher than the previous quarter and 206,000 higher compared to a year ago) however, the overall employment rate is 75.3% which is 0.3% higher than the previous quarter and 0.7% higher than the previous year – ONS August 2025 (Release date: 12 August 2025)
There are 9,073,000 people economically inactive in the UK, which is 156,000 lower than the previous quarter and 404,000 lower than the previous year – ONS August 2025 (Release date: 12 August 2025)
Economic inactivity rate is 21% which is 0.4% lower than the previous quarter and 1.1% lower than the previous year – ONS August 2025 (Release date: 12 August 2025)
Annual wage growth in real terms, adjusted for inflation using the Consumer Prices Index excluding owner occupiers‘ housing costs (CPI) to adjust for inflation, annual growth in real terms was 1.5% for regular pay and 1.1% for total pay – ONS August 2025 (Release date: 12 August 2025)
Annual average regular earnings growth was 5.7% for the public sector and 4.8% for the private sector – ONS August 2025 (Release date: 12 August 2025)
Less_Relative4584 on
It’s a cultural problem. People don’t deviate from the norm. Try a business model that works on the weekends and takes Wednesday and Thursday off instead. Or have your lunch break at irregular times of day. Encourage people to wear bright colours, trendy outfits, and confidently express themselves.
And the goal shouldn’t be to be a massive business chain. Stop trying to be American in all the worst ways.
Virtual-Baseball-297 on
Called outsourcing
In my industry only companies surviving are hiring overseas and not in the uk
Which is wild when all clients are based in Britain and mainly public sector contracts
hektordingding on
Every place i go i see Indian students working part time legally. An then overtime hours at £4 an hour which they will HAPPILY accept since it’s being sent back to India ANYWAYS.
Why would an employer pay me minimum wage when they can pay Rajinder £4 and treat him like shite.
terrordactyl1971 on
Our IT department is already laying off some people as it has managed to get AI to do the roles
mittfh on
I wonder what the scenario would be in an alternate universe where the government had left employer’s NICs alone but instead reversed the 4 percentage point cut in employees NICs. Maybe they’d have had enough fiscal headroom to avoid annoying pensioners, even though they’d have suffered a short term roasting by the media for reversing their promise not to raise income tax, NI or VAT…
NormalInnocentMan on
I’ve noticed a massive change in software dev recruitment in the last year.
It used to be all I had to do was upload a fresh copy of my CV on a few job sites and I’d be absolutely inundated with calls and emails from recruiters. Now there’s absolutely nothing, and the occasional application I send is ignored.
Fortunately I’m just shopping around a bit while in a secure job, but it’s looking bloody tough out there at the moment
hardcorehicks84 on
Yep. I’m busy as hell. The number of management/mid management far exceeds the number of working staff actually doing the job. 70% of the jobs that were here have moved to Poland over the last 5 years and we haven’t recruited anyone for 3 years. Even though there’s more work coming than we can deal with we are still not expanding the team. Overheads are rising but it’s not passed to the employees.
For my actual job, I haven’t been able to do it correctly for years. The offshored work is not good. Language barrier maybe but the quality is not what it was. It all amounts to critical safety concerns. But the higher ups don’t care as long as it’s on time and to budget. Crazy world.
Andries89 on
We’re in the middle of a redundancy consultation ourselves. 50+ jobs to be axed in a 450 staffed business
LuxuriousMullet on
I work in the city in IT infrastructure, if anyone leaves we:
1) look backfill with AI
And/or
2) look to outsource overseas.
We’ll probably never hire anyone in the UK again which is a real shame.
I’m hanging on for dear life in my current role because I’m convinced it’s not going to ever get better than this in terms of work in the UK.
I’ve also started networking like mad because when they finally replace me I’m fairly sure the only way I’ll be able to get a another job is via nepotism, I guess that’s really the only benefit of being in London, more networking opportunities.
individualcoffeecake on
Simple answer. Businesses are not backfilling headcount nor hiring in new headcount in anticipation of what AI can do for them.
sychtynboy123 on
Plenty of job losses aswel
Nothing on news either
Country is doomed
Concerned-CitizenUK on
There’s a lack of well paying jobs period, I feel sorry for our young, no hope of getting on the housing ladder, no hope of council housing as other groups get priority, the country is a real mess. I have still yet to understand why we need to import people with families to drive Ubers, how are they affording rent?
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> It said there was evidence that some firms may not be recruiting new workers or replacing people who have left.
I guess in isolation this would be fine if the economy was growing and people were starting new companies. Even if average number of employees decreased per company, an increase in startups (across all industries, like green energy, education, etc) would balance it out. But we have complete stagnation and lack of entrepreneurism.
[deleted]
“Private sector pay growth also edged down and remains below the public sector rate, which increased” – ONS statement today
And that, ladies and gentlemen, is what is going on here. I blame myself for voting Labour, but they’ve gone straight for the stereotypical tax the private sector and pay the public sector. Next step will to be to go after private sector pensions, whilst leaving public sector pensions unscathed.
Wage growth = inflation = higher interest rates. So enjoy those high mortgages for a little longer.
Maybe this means the government will invest in more start up businesses to increase employ…. Haha, just kidding. More taxes for the middle!!!
I assume interest rates have to go down now, and then we get more inflation.
It’s a lack of confidence – doesn’t look like Labour will actually be able to deliver their manifesto so businesses are playing wait and see. So we’ll get a competely manufactured recession.
As someone who has recently returned from overseas and is desperately looking for a job; whatever the official statistics say, this is the quietest I’ve ever known the job market to be (excluding the lockdowns).
I’m genuinely worried I won’t be able to find something this time.
Almost everyone I know is unbelievably busy at the moment and constantly feels like they are short staffed.
I’m not sure when these efficiency gains we’ve been promised from AI are coming but I haven’t seen much evidence yet.
Sad to hear about the labour market though. I’m sure it’s unrelated.
Sluggish growth, persistent sticky inflation, rising unemployment, low business confidence, weak consumer spending, slowing wage growth and rising job cuts. Stagflation on the horizon?
Go for growth by punishing employers. Led by donkeys, red or blue are just different cheeks of the same backside.
Who would have thought making it more expensive to employ people would reduce the amount of people employed
AI overviews in Google are stealing about 30% of informational traffic to websites. For years companies have been showcasing their expertise with content, and that content convinced people to give them a chance. But that isn’t happening anymore, meaning revenue for a massive variety of companies has dropped for seemingly no reason.
It’s also becoming increasingly clear that a growing share of job postings aren’t for real jobs at all. For some companies, it’s highly profitable to collect free data from applicants, CVs, work histories, and personal details, which can then be sorted, ranked, and even sold to recruiters or used later if a genuine vacancy arises.
Posting fake jobs also gives firms a ready-made database to verify future CVs for authenticity, while projecting an image of growth to outsiders. From a purely commercial perspective, there’s little downside for a private company unfortunately, the only people who lose out are the jobseekers whose time and data are being exploited.
This is a direct consequence of the chancellor increasing NICs. Companies are holding back on hiring additional staff because to do so could cost them any rates relief they had, and put an even bigger dent in their finances than before. It is far less worth it than before to hire additional staff unless you’re absolutely desperate and are certain that the additional work capacity will pay for the additional taxation burdens.
Meanwhile the job centre and restart still requires people to apply for 30+ jobs a week.
I have been trying to tell them both for months that job vacancies are falling fast and to ask them if theres any courses or whatever that I can do to retrain so I can get out of this cycle and they look at me like im insane and insist everything is ok lol
We’ve just stopped recruiting anyone and are more aggressively pushing outsourcing, far too expensive to employ in the UK. Shame.
We’re in an economic downturn and have been for quite some time…. Things are only going to get worse for this year and next year. I haven’t seent he job market this bad since 2008 and that makes for some pretty grim reading if you ask me ! Wages are absolutely shocking, yet house prices are at all time highs, we have less services than we did back in 2008 and inflation is hammering food prices.
We are already in a recession imo and it will be official by Q4 of this year. If you have any debt that you can clear now would be a good time to do so.
Well, yeah. The government just dumped a bunch of taxes onto companies, making it more expensive to hire people.
We can all see what’s happening, here. Nothing in the budget had the likelihood of improving anything and the 20bn black hole has now turned into a 50bn black hole.
Everything the doomsayers predicted, wrt the budget, have come to fruition. This feels intentional tbh.
Tell me about it.
I’m going to lose my job within the next 2 years due to the company going under. I have chronic fatigue and fibromyalgia so my job choices are very limited. I’ve never seen the job market so bad. I’m terrified.
Since Labour have come to power:
Overall, employment is up, employment rate is up, economic inactivity is down and wages continue to grow faster than inflation.
There are 34,214,000 people employed in the UK, which is 238,000 (April to June 2025) higher than the previous quarter and 725,000 higher than the previous year – ONS August 2025 (Release date: 12 August 2025)
Unemployment is up slightly (59,000 higher than the previous quarter and 206,000 higher compared to a year ago) however, the overall employment rate is 75.3% which is 0.3% higher than the previous quarter and 0.7% higher than the previous year – ONS August 2025 (Release date: 12 August 2025)
There are 9,073,000 people economically inactive in the UK, which is 156,000 lower than the previous quarter and 404,000 lower than the previous year – ONS August 2025 (Release date: 12 August 2025)
Economic inactivity rate is 21% which is 0.4% lower than the previous quarter and 1.1% lower than the previous year – ONS August 2025 (Release date: 12 August 2025)
Annual wage growth in real terms, adjusted for inflation using the Consumer Prices Index excluding owner occupiers‘ housing costs (CPI) to adjust for inflation, annual growth in real terms was 1.5% for regular pay and 1.1% for total pay – ONS August 2025 (Release date: 12 August 2025)
Annual average regular earnings growth was 5.7% for the public sector and 4.8% for the private sector – ONS August 2025 (Release date: 12 August 2025)
It’s a cultural problem. People don’t deviate from the norm. Try a business model that works on the weekends and takes Wednesday and Thursday off instead. Or have your lunch break at irregular times of day. Encourage people to wear bright colours, trendy outfits, and confidently express themselves.
And the goal shouldn’t be to be a massive business chain. Stop trying to be American in all the worst ways.
Called outsourcing
In my industry only companies surviving are hiring overseas and not in the uk
Which is wild when all clients are based in Britain and mainly public sector contracts
Every place i go i see Indian students working part time legally. An then overtime hours at £4 an hour which they will HAPPILY accept since it’s being sent back to India ANYWAYS.
Why would an employer pay me minimum wage when they can pay Rajinder £4 and treat him like shite.
Our IT department is already laying off some people as it has managed to get AI to do the roles
I wonder what the scenario would be in an alternate universe where the government had left employer’s NICs alone but instead reversed the 4 percentage point cut in employees NICs. Maybe they’d have had enough fiscal headroom to avoid annoying pensioners, even though they’d have suffered a short term roasting by the media for reversing their promise not to raise income tax, NI or VAT…
I’ve noticed a massive change in software dev recruitment in the last year.
It used to be all I had to do was upload a fresh copy of my CV on a few job sites and I’d be absolutely inundated with calls and emails from recruiters. Now there’s absolutely nothing, and the occasional application I send is ignored.
Fortunately I’m just shopping around a bit while in a secure job, but it’s looking bloody tough out there at the moment
Yep. I’m busy as hell. The number of management/mid management far exceeds the number of working staff actually doing the job. 70% of the jobs that were here have moved to Poland over the last 5 years and we haven’t recruited anyone for 3 years. Even though there’s more work coming than we can deal with we are still not expanding the team. Overheads are rising but it’s not passed to the employees.
For my actual job, I haven’t been able to do it correctly for years. The offshored work is not good. Language barrier maybe but the quality is not what it was. It all amounts to critical safety concerns. But the higher ups don’t care as long as it’s on time and to budget. Crazy world.
We’re in the middle of a redundancy consultation ourselves. 50+ jobs to be axed in a 450 staffed business
I work in the city in IT infrastructure, if anyone leaves we:
1) look backfill with AI
And/or
2) look to outsource overseas.
We’ll probably never hire anyone in the UK again which is a real shame.
I’m hanging on for dear life in my current role because I’m convinced it’s not going to ever get better than this in terms of work in the UK.
I’ve also started networking like mad because when they finally replace me I’m fairly sure the only way I’ll be able to get a another job is via nepotism, I guess that’s really the only benefit of being in London, more networking opportunities.
Simple answer. Businesses are not backfilling headcount nor hiring in new headcount in anticipation of what AI can do for them.
Plenty of job losses aswel
Nothing on news either
Country is doomed
There’s a lack of well paying jobs period, I feel sorry for our young, no hope of getting on the housing ladder, no hope of council housing as other groups get priority, the country is a real mess. I have still yet to understand why we need to import people with families to drive Ubers, how are they affording rent?