A recent survey by CV-Library, one of the UK’s leading job boards, reveals a mixed reaction among employers to the Autumn Budget and its potential impact on recruitment. Out of 580 businesses and recruiters surveyed, 47% believe the Budget will encourage hiring, while 43% fear it will hinder recruitment efforts.
This sharp divide underscores the uncertainty currently surrounding the UK labour market. While some firms view the Budget as a springboard for growth, nearly as many anticipate it will slow down hiring plans. For jobseekers, this means the jobs market may feel uneven across various sectors, with employer hiring confidence varying from one to the other.
Hiring decisions put on hold
The timing of the Budget and ongoing speculation clearly influenced employer behaviour, with 87% of businesses pausing recruitment before the announcement. However, only 39% now intend to restart hiring, while 36% remain cautious and plan to delay further.
This trend highlights how closely hiring strategies are tied to economic policy. Many employers have adopted a “wait-and-see” approach, delaying job offers, restructuring campaigns for roles and putting expansion plans on hold until they feel more confident.
Rising employment costs remain a top concern
Cost pressures remain front of mind for UK businesses, with 73% expecting the Budget to drive up employment costs. This points to higher wages, increased National Insurance contributions, and additional staffing overheads. For SMEs and cost-sensitive industries, these rising expenses may lead to greater caution around permanent hires, salary reviews, and benefits packages.
Hiring shift towards part-time and temporary jobs
The survey also found that 63% of respondents anticipate changes to minimum wage and frozen NI thresholds will influence the use of more part-time or temporary staff – particularly in labour-intensive industries such as logistics, retail, and hospitality.
For employers, flexible staffing offers a way to manage wage bills during uncertain times. This is ideal for jobseekers looking for flexible work. However, for candidates looking for long-term stability, this shift will feel less reassuring, reinforcing the need to stay informed about sector trends, whilst remaining flexible for permanent and temporary roles.
Cautious optimism over the next 12 months
Looking beyond the immediate impact, the outlook for the next 12 months appears more positive. According to the survey, 36% of businesses plan to significantly increase hiring, while another 35% expect a slight uptick. This suggests that while short-term caution persists, many employers anticipate growth once the dust settles and businesses adjust to the added cost of employment.
This is good news for jobseekers when looking ahead medium-term. While hiring may feel slow now, demand for talent is likely to rise as businesses regain confidence and plan for expansion.
Lee Biggins, Founder and CEO of CV-Library, commented:
“Our survey results show that the Budget has not been the catalyst for jobs creation that businesses had hoped for. But there are signs that a period of relative stability and no new cliff-edge costs for businesses might start to see the hiring shackles start to come off as we move into the spring.”
