IoD press release Government must use Budget to restore employer confidence in hiring
Responding to the latest ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data shows a continued softening in employer demand for labour, with the number of payrolled employees down 32,000 on the month and unemployment up 0.3 pps on the quarter.
“The fact that the number of payrolled employees is down 180,000 on the year should be a wake-up call for the government. This fall is a direct result of the recent increase in employer’s National Insurance contributions and the upcoming Employment Rights Bill, the cumulative effect of which is that hiring employees has become a costlier and riskier proposition for businesses.
“An IoD survey of 500 business leaders in October found that the Employment Rights Bill is the top employment and workplace regulation blocking organisations’ ability to grow (cited by 54% of respondents). The message from business is clear: the Bill is deterring businesses from hiring staff.
“If the government is serious about achieving its growth and employment targets, it must use the Budget to implement sensible changes to its employment reforms and avoid tax-raising measures which further increase the cost of employment.”
Full Results
500 responses from across the UK, conducted between 17-30 October 2025. 14% ran large businesses (250+ people), 20% medium (50-249), 25% small (10-49 people), 30% micro (2-9 people) and 11% sole trader and self-employed business entities (0-1 people).
Which are the employment and workplace regulations that are most blocking your organisation’s ability to grow?
In what ways are they blocking your organisation’s growth? Please select all that apply.
