UK labour reforms prompt one in three employers to reduce hiring plans

Over a third of UK firms plan to cut hiring due to new labour laws. The CIPD warns that record low recruitment levels risk deepening the current job slowdown.

More than one in three UK employers plan to cut hiring of permanent staff because of costs introduced by the Labour Party government and its recent labour law reforms. According to a survey from the Chartered Institute of Personnel and Development (CIPD), hiring intentions in the United Kingdom GBGB are at their lowest level on record excluding the first year of the COVID pandemic. This reduction in recruitment plans increases the risk of a deeper jobs market slowdown across the national economy.
The findings are closely linked to the Employment Rights Act, which was approved in Parliament in December. The legislation is reported to raise employer costs, a factor cited by many businesses as the primary reason for changing their hiring intentions. The CIPD reports that these structural changes are expected to have immediate implications for the human resources sector as firms adapt to the new regulatory environment.
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