Record low hiring intentions as NICs hit recruitment costs

Hiring intentions among Britain's businesses remain at a record low as they grapple with rising employment costs and worry about the economic outlook, with the young hit hardest.

- Julia Kollewe

Three separate surveys issued today paint a gloomy picture of hiring activity, pay and business confidence, with claims that bosses were "stuck in limbo" and waiting for greater clarity in the autumn budget.

Only 57% of private sector employers plan to recruit staff in the next three months - down from 65% in autumn 2024 - as they deal with the combined £25bn rise in employer national insurance contributions (NICs) that took effect in April and other rising costs, according to the Chartered Institute of Personnel and Development (CIPD).