How are higher costs and uncertainty reshaping the UK's economic backdrop? The latest data spell out a cooling labor market in Britain, as three separate surveys show hiring intentions at record lows and starting salaries growing at the slowest pace since early 2021. Only 57% of private sector firms plan to hire in the next quarter—down sharply from 65% before last autumn, according to the Chartered Institute of Personnel and Development. Rising payroll taxes and employer national insurance increases coupled with economic jitters are hitting hardest in sectors reliant on young and low-wage workers, like retail and hospitality.
Meanwhile, the slump in recruitment comes as businesses anxiously eye global trade tensions and the possibility of further cost shocks. The Bank of England has responded with its fifth rate cut this year, but the mood across boardrooms remains, in a word, limbo.
