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The UK jobs market a month after NI

ended 07. May 2025

A national newspaper journalist is looking for views from recruiters and HRs about the health of the jobs market a month on from the NI changes. Have employers been laying off staff or has the new fiscal regime had no material impact in your experience? Have certain sectors proved more vulnerable than others (retail perhaps)? What are hiring appetites like at UK businesses right now - are things on ice or is it BAU? Any insights or trends you're seeing at present in light of the NI changes, send them across. Deadline is 17:00 today.

2 responses from the Newspage community

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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The feedback from my business clients, in a nutshell, is that the UK jobs market is strained but not collapsing. Businesses are prioritizing resilience over expansion, with most freezing hiring and trimming their workforce, replacing with AI and overseas remote workers where applicable. The retail and hospitality sectors are hardest hit. UK GDP growth at 0.2%, inflation is expected to rise to 3.7%, further dampening appetite, and if global trade tensions worsen, the pressure will intensify. No mass layoffs, but caution rules, especially in vulnerable sectors.
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David Morel
CEO at Tiger Recruitment
From what we are seeing on the ground, the hiring market seems to be holding up remarkably well in the face of NI increases and the almost daily discourse around tariffs. Businesses knew that NI increases were coming down the track and the financial/professional services market is broadly of the mindset that they want to do business and to do this they need to compete for the best staff. Some subtle changes we are seeing: an increase in temp and contract hires. Secondly, it is “bitty” at times - certain companies have headcount freezes on and some are hiring. Whilst the outlook is broadly positive from our Client base, there are different perceptions depending on who you speak to and this is not industry sector specific. We don’t deal with the retail market and have limited exposure to hospitality so I cannot comment here.