New Year – same anxieties about jobs!

As we enter a new working year, anxiety about employment prospects has grown since chancellor Rachel Reeves delivered her budget on 26 November, which introduced a freeze on income tax thresholds alongside a rise in the national minimum wage.

Research, based on responses from 2,500 workers, found that more than a third are concerned they could face redundancy or lose their job as a result of the budget measures. In addition, one in four employees fear their employer may respond by altering their working arrangements, including contracts, hours, benefits or pay.

The budget has brought broader economic instability into sharper focus for both businesses and workers and the risk of redundancy now feels much more tangible for many people, even in industries not directly affected by government policy. As a result, employees are increasingly reassessing their job security and longer-term career outlook.

Younger workers appear to be feeling the pressure most acutely. The survey showed that 43% of those aged between 25 and 34 are worried about the possibility of redundancy.

These concerns are not without basis. Figures from KPMG show that demand for staff continued to fall in November, extending a decline in vacancies that has been ongoing for two years.

Employers should take steps to reassure staff during this period of heightened anxiety. It is important to be transparent, even when organisations are facing tough choices, as clear and honest communication helps preserve trust and retain valuable employees. Employers should ensure they communicate clearly and provide support to help their teams navigate an increasingly challenging environment.

Should you require advice regarding your workforce, contact 121 HR Solutions on 0800 9995 121.

New Year – same anxieties about jobs!

121 HR Solutions Ltd