Top 3 Takeaways from CIPD’s Spring 2025 Labour Market Outlook

The CIPD’s Spring 2025 Labour Market Outlook offers a sobering snapshot of the UK’s employment landscape. For HR leaders and business professionals, the report highlights critical shifts that demand attention and action.

1️⃣ Employer Confidence Hits a Post-Pandemic Low

The net employment balance has fallen to +8 — the lowest level seen outside the pandemic era. This signals a significant dip in hiring confidence, particularly in sectors like retail and education, where workforce expansion is stagnating. Employers are clearly treading cautiously amid economic uncertainty.

2️⃣ Redundancy Plans Remain High

A concerning 25% of employers are planning redundancies in the coming quarter, with the private sector slightly higher at 27%. However, there’s a silver lining: over half of these employers are offering enhanced redundancy packages. This suggests a continued commitment to employee wellbeing, even in difficult times.

3️⃣ Rising Employment Costs Are Reshaping Strategy

Increased National Insurance contributions and a higher National Living Wage are forcing many organisations to rethink their strategies. The result? Slower recruitment, reduced training budgets, and potential price increases. The looming uncertainty around the Employment Rights Bill only adds to the cautious mood.

📉 These trends underscore the importance of agile workforce planning, transparent communication, and strategic foresight. As the labour market evolves, staying informed and adaptable is key.

Need help navigating these changes?
Let’s talk. At Foreshore HR, we’re here to help you steer through uncharted waters with confidence.

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