UK Workers Pessimistic on Labour Market Outlook: 58% Expect more Layoffs in 2025

The UK labour market is facing a wave of uncertainty, with workers bracing for a tougher year ahead. A new survey of more than 1,000 UK workers highlights growing concerns about hiring prospects, return-to-office mandates, and overall job security. More than half of those surveyed (56%) for the February 2025 report think the UK labour market will take a turn for the worse this year.

Key takeaways:

• 58% predict the UK labour market will have fewer job openings in 2025
• 61% feel job searching will be more difficult compared to 2024
• 63% report that the UK labour market has become more competitive
• 75% anticipate more UK employers will announce return-to-office (RTO) mandates
• 79% feel UK salaries are not keeping up with inflation and the cost of living

UK Workforce Braces for Tougher Job Hunting in 2025

Workers are increasingly concerned about the ability to land a new job in 2025. The majority of those polled anticipate fewer job openings and feel finding a new role will be a far more challenging prospect compared to last year. 

• 61% of respondents think it will be harder to find a job in 2025, compared to 2024
• 63% report that the UK labour market has become more competitive for job seekers in the last 12 months
• 58% say there will be fewer job openings in 2025

What this means: Job seekers in the UK are growing increasingly anxious about employment prospects in 2025, with many anticipating a more competitive market and fewer opportunities compared to the previous year.

Is it the End of the RTO Era?

The UK workforce does not have high hopes for the continuation of remote work on a broad scale and anticipate further losses to jobs offering flexible work arrangements. 

• 51% of respondents say there will be fewer remote work opportunities in 2025
• 75% think more companies will announce RTO mandates compared to 2024

What this means: UK workers are increasingly doubtful about the future of remote work, expecting more return-to-office mandates and fewer flexible job opportunities in the future.

Paycheque Pinch Impacting the Workforce

Rising living costs and economic uncertainty are making it harder for workers to keep up with everyday expenses. As wages struggle to keep pace, many find their paycheques stretched thin, raising concerns about financial stability in the year ahead.

• 79% of respondents feel UK salaries are not keeping up with inflation and the cost of living

When asked about the most important factors when considering a new job, salary and benefits was the top consideration for respondents (76%) but the economic environment and inflation can make it difficult to land a salary that covers the rising cost of living expenses. The elements most important when considering a new job include:

• Salary and benefits – 76%
• Work-life balance – 69%
• Job security – 56%

What this means: With the cost of living on the rise, many UK workers are struggling to make ends meet as wages fail to keep pace with inflation, driving financial concerns among the workforce. 

UK Workforce Shares a Pessimistic Outlook for Labour Economy

Economic uncertainty is fueling concerns about job security and the overall health of the labour market in the year ahead. Many workers expect increased layoffs and a worsening job landscape, signaling growing unease about employment prospects.

• 58% expect more layoffs this year compared to 2024
• 56% feel the labour market will get worse in 2025

When asked about their biggest concerns with the UK labour market, survey respondents reported:

• Cost of living vs. salaries – 76%
• Economic instability – 53%
• Job security – 49%
• Wage stagnation – 37%
• AI/automation replacing jobs – 30%

What this means: Growing economic uncertainty is intensifying workers’ concerns about job security, with many anticipating more layoffs and a declining labour market in the year ahead.

For press inquiries, contact Elizabeth Buccianti, senior manager, public relations at elizabeth.buccianti@bold.com.

Methodology

The findings presented were obtained by surveying 1,007 UK workers on 14 February 2025 using Pollfish. Participants were asked about job search, RTO mandates and the current labour market climate, responding to various question types including yes/no questions, scale-based questions gauging agreement levels, and questions that permitted the selection of multiple options from a list of answers.