UK Employer Confidence Index 2025 Survey

UK Employer Confidence Index 2025 Survey

Business Advice

Peninsula Team, Peninsula Team

2nd Jan 2025(Last updated Jan 6th 2025)

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Peninsula Team, Peninsula Team

2nd Jan 2025(Last updated Jan 6th 2025)

Peninsula Group has conducted an annual survey of 79,000 businesses across Australia, Canada, Ireland, New Zealand, and the UK, to understand business sentiment and identify the latest trends. Questions are related to three key areas: business goals and concerns, staffing and ways of working. A wide variety of businesses, both in size and industry, share details of their current employment practices and offer their perspective on the challenges currently facing employers. This report explores the UK results and how they compare globally.

2024 was a year of change like never before for UK employers, with six legislative changes introduced in one day in April. We have conducted a survey of 79,000 businesses regarding confidence as we move into 2025 - download our in-depth report now.

Following the General Election, the new Government published its Employment Rights Bill in October and increases to National Insurance Contributions were announced as part of the Autumn Budget. Therefore, it is no surprise that rising costs is cited as the top concern for UK employers in the year ahead for more than four in five businesses (83%).

Legislative changes came in close second, cited by almost two thirds of employers (64%). The proposed changes touch almost every area of employment law, including unfair dismissal, fire and rehire and flexible working. And small businesses are concerned about the impact of these changes on their operations.

On the other hand, employers seem to have increased confidence in the UK economy, compared to this time last year. Less than a quarter of employers (23%) cite inflation as their top concern, compared to 1 in 3 last year. Concerns around recession are also falling with less than a fifth (18%) of UK employers naming it as one of their top concerns, compared to just over a quarter in 2023 (27%). Download our Employer Confidence Index 2025 survey for more in-depth analysis.

UK employers’ mixed feelings are also reflected in their business goals for the year ahead. Almost half (49%) of businesses feel optimistic, listing growth as their top business goal for 2025. However, the unique pressures businesses are under as we enter 2025 are taking their toll on many, with more than one in four (26%) simply hoping for survival, compared to 19% last year.

In 2022, more than a third of respondents (38%) cited survival as their top goal, showing just how turbulent the last few years have been for British businesses. Download our Employer Confidence Index 2025 survey now for further details from UK employers.

Another key indicator that businesses are approaching 2025 with trepidation is that many are putting a hold on recruitment. Only one in twenty (5%) are planning to recruit over the next year, a significant decrease on 2023 (22%). It is likely that businesses are waiting to understand in more detail how changes to employment law will affect their workforce and considerations during the recruitment process.