Marvin OnumonuIn late August 2025, 48% of businesses with 10 or more employees saw staffing costs rise over the last three months, according to the latest Business Insights data from the Office for National Statistics (ONS).
This was down from late May but higher than the same time last year.
Around 17% of these businesses said hourly wages increased in July compared to June, which was a sharp drop from April but in line with July 2024.
Expectations for staffing cost increases over the next three months sat at 31%, down from late May but slightly up on last year.
In July, 31% of larger businesses struggled to recruit, mainly due to a lack of qualified applicants or too few applications.
Permanent homeworking has remained stable, with 19% of private sector firms using or planning to use it as a long-term approach since late 2024.
In late August, 33% of businesses that exported goods in the past year were affected, and 31% expected to be hit next month.
The most common impact expected was having to pass extra costs to customers.
Kevin Fitzgerald, UK managing director at Employment Hero, said: “The new ONS figures show staffing cost pressures are easing, but they have not disappeared.
“The priority now is clear: boost productivity, keep hold of talent and plan smarter to avoid stop-start hiring.”
