One in three (33%) of UK employers “expect to cut jobs over the next three months” according to new market research from the Chartered Institute of Personnel and Development (CIPD).
In partnership with the Adecco Group UK & Ireland, CIPD found in its quarterly Labour Market Outlook that exactly one third of employers intend to make redundancies in the next three-month period.
This number has shown a steep increase of 11% since the last quarter.
This comes alongside very little chance of pay rises, irrespective of industry or position, with 40% of firms expecting to freeze pay for at least 12 months, as well as what the report called “the lowest net employment balance on record when using current methods”.
The report added: “Hiring intentions are slowly beginning to rise, but remain well below levels seen in previous years.”
The CIPD did add that the average direct cost to an employer making a redundancy is £11,125. This, coupled with the Coronavirus Job Retention Scheme, has likely stopped many more redundancies and will continue to do so.
Elsewhere, net employment scores were highest in healthcare (+30) and public administration (+13), while lowest in hospitality (-26) and retail (-23).