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Case studies: "Hiring is on hold" say business and charity owners as vacancies and payrolled employees fall

ended 09. June 2025

The UK unemployment rate for people aged 16 years and over was estimated at 4.6% in February to April 2025. This is above estimates of a year ago, and up in the latest quarter, according to official data published this morning. Meanwhile, the estimated number of vacancies in the UK fell by 63,000 on the quarter, to 736,000 in March to May 2025. This was the 35th consecutive quarterly decline and feedback suggests some firms may not be recruiting new workers or replacing workers who have left. Additionally, the early estimate of payrolled employees for May 2025 decreased by 109,000 (0.4%) on the month and decreased by 274,000 (0.9%) on the year to 30.2m. Additionally, estimates for payrolled employees in the UK decreased by 55,000 (0.2%) between March and April 2025 and fell by 115,000 (0.4%) between April 2024 and April 2025. Newspage asked a selection of business owners if they're hiring — and the majority said hiring is firmly on hold. Views below.

6 responses from the Newspage community

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Kate Allen
Owner at Finest Stays
Hiring is on hold. The NI hike and HR hassle just aren't worth the grief. I'm sticking with flexible VA's - less risk, less red tape. When running a small business gets more expensive by the day, working smarter isn't optional, it's survival.
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Jennie Prewett
Founder and Trustee at Incredible Kids
Every role matters in a small charity like Incredible Kids. At a time when funding is scarce and costs are soaring, hiking National Insurance doesn’t just hurt our budget, it hits the children and families we support in Bristol.
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Louise Holme
Business Owner at HolmeStores
As an independent hospitality operator, we have put all hiring on hold until the economy shows signs of greater strength and stability. We were hoping to be hiring up to five more roles within our team this year, expanding our opening hours and business offering. However, without an industry-specific VAT review, business rates overhaul or greater support for SMEs, the climate is currently just too challenging on our high street. All we can manage is day-by-day, which is highly frustrating for ambitious business owners.
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Rob Peters
Principal at Simple Fast Mortgage
The National Insurance hike was a yet another blow to businesses in the UK. For smaller firms, an extra £800 per employee per year is significant. The National Insurance hikes are one piece of a bigger picture: pressures such as wage inflation, tax, retention challenges and broader economic uncertainty are weighing hard. Firms are increasingly asking themselves if they feel confident enough in future revenue to bring on new people. Right now, it feels like a lot of firms don’t.
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Tony Redondo
Founder at Cosmos Currency Exchange
I’ve hit the pause button on traditional hiring in favour of cost-effective, flexible arrangements. I’m only hiring on a contract basis and mostly overseas. 15,000 Rand (about £750) per month is a good salary in South Africa for a graduate with perfect English language skills, in the same time zone as the UK.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Since April’s NI changes, I’ve paused hiring. Not out of hesitation, but because it’s now economically senseless. Cutting employee rates while leaving employer contributions untouched is headline politics at its most cynical. Businesses still shoulder the full cost of job creation, yet Labour spins it as relief. Meanwhile, wage demands rise, productivity stagnates, and every new hire carries more regulatory and fiscal drag than ever before. SMEs like mine are quietly tightening belts, not opening cheque books. Add looming reforms to employment law and you’re lighting a bonfire under enterprise. Growth won't be conjured by slogans or tax tweaks targeting voters. It will come when the government stops penalising those who create jobs and start rewarding work. Until then, expanding headcount feels less like investment and more like volunteering for a slow, state-sanctioned strangling.