All eyes will be on Chancellor Rachel Reeves this week as we await confirmation of her plans to balance the books in this week’s Autumn Budget Statement.
There is a lot of economic uncertainly. So far, the economic growth promised by the Labour Government has proved elusive. The Chancellor is expected to implement a raft of measures and further tax hikes with the hope of bringing a well needed boost to the economy. If applied, further business taxation will hit struggling businesses even harder and, as many hang on to survive into 2026, they may consider reducing their workforce numbers even further as one option to secure future stability.
In addition to this groundswell of wariness, the Employment Rights Bill, which is still doing its ping-pong through the courts and is still awaiting Royal Accent on final amendments, is also making businesses cautious.
Against this perfect storm backdrop, it’s perhaps therefore not surprising that some recruitment agencies are reporting a pause in hiring during October and November with Adzuna reporting that the number of job vacancies have dropped below 800,000 in October for the first time since March 2021. The exception of this being roles in hospitality and retail which as ever remain buoyant during the run-up to Christmas. They report that vacancies fell in every part of the UK in October with the steepest monthly, and annual declines seen in Wales (-9.13% MoM; -15.34% YoY) and Scotland (-5.66% MoM; -10.72% YoY).
The October 2025 survey report by the Recruitment & Employment Confederation and KPMG, published on 14th November, highlighted that permanent vacancies continue to fall in the UK at a steeper rate than temporary roles. However, the downturn in permanent placements had eased for the fourth straight month, even so, recruiters frequently commented that employers were hesitant to commit to new hires amid a weaker economic climate and uncertainty over the upcoming government Budget.
The slump in healthcare roles is also reported to have eased slightly. However, as we recently reported that is likely to be short lived where plans for a restructure of some NHS services are underway and planned for implementation early next year.
December is typically a time when business take stock. They turn their mind to resource strategies and restructuring of services. Businesses are also looking at alternative ways to deliver services, with many exploring A.I. initiatives in the hope this will deliver more economical results and efficiencies.
Equally, employers and employees often seek more pragmatic resolutions to employment disputes, favouring a negotiated settlement over protracted and costly internal dispute resolution methods or litigation.
We await the Chancellor’s Autumn Budget Statement and, of course, will share our thoughts as to the impact this may have on business and in particular employment with you soon.
Lawson West Solicitors’ Employment Law Team
We have a team of experienced employment lawyers ready to help employers and individuals who find themselves facing redundancies through restructuring. We’re a Top Tier firm recognised in The Legal 500 for Employment expertise in the East Midlands, confident and experienced, and here to help.
