British employers remain cautious about hiring, while business confidence has stayed close to its weakest level outside the COVID-19 pandemic, according to a survey from the Chartered Institute of Personnel and Development (CIPD).
The findings were released a day before official labour market data is expected to show continued weakness. The Bank of England is closely monitoring employment conditions as it considers its next interest rate decision, with rates unchanged since December 2025.
The CIPD’s net employment balance remained at +9, close to its lowest level outside the pandemic.
Private-sector hiring intentions also held at +11, matching the lowest level recorded outside the pandemic. Only 57% of private-sector employers said they planned to recruit during the next three months, also matching the post-pandemic low.
Redundancy levels have remained broadly stable, leading the CIPD to describe current conditions as a “low-hire, low-fire” labour market.
Expected pay growth remained at a median of 3%, unchanged for more than two years. Meanwhile, 31% of employers reported having vacancies that were difficult to fill, while 14% expected significant recruitment challenges over the next six months.
The CIPD called for measures to reduce the cost of hiring and provide greater support for youth employment as businesses continue to approach recruitment cautiously.
The survey was based on responses from 2,017 employers collected between 24 June and 24 July.