IoD press release Labour market slowdown demands swift policy action
Commenting on this morning’s release of ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data shows a sharp decline in employer demand for labour, with payrolled employees decreasing on the month by 0.4% and vacancies down by 63,000 on the quarter.
“The business case for hiring new staff has been dealt a series of blows by the recent hike to employer National Insurance Contributions, above-inflation increases to the National Living Wage, and the sweeping changes to employment law coming down the track from the Employment Rights Bill.
“Our own data shows that the measures contained in the Employment Rights Bill have made almost half (49%) of business leaders less likely to hire new staff and a third (36%) more likely to outsource roles to other countries.
“Government must urgently show that it is listening to the concerns of business about the consequences of the Bill as it is currently drafted. As the Bill continues its passage through the House of Lords, we are calling for targeted changes to the Bill to restore business confidence in hiring and investment in staff in the UK.”
Full results
483 responses from across the UK, conducted between 15-28 May 2025. 14% ran large businesses (250+ people), 19% medium (50-249), 24% small (10-49 people), 31% micro (2-9 people) and 12% sole trader and self-employed business entities (0-1 people).
What impact, if any, do you believe the Employment Rights Bill will have on your organisation’s approach to the following:
