Marvin OnumonuEmployment Hero’s Jobs report has shown most UK workers were holding onto their jobs over the past year, with job security the top priority as the labour market slowed.
The report found that after the October 2024 budget, the usual seasonal rise before Christmas did not happen and employment dropped by -0.9% in December 2024.
From February, employment started to recover but year-on-year gains stayed lower than before.
By July 2025, the employment rate was up 3.1% year-on-year, but this was much slower than the 8% growth seen in 2024.
The survey found 55% of workers put job security first, especially among 18 to 34-year-olds, where that figure rose to 65%.
Most employees, 59%, said the labour market was getting worse, and 51% did not feel confident about getting a job within three months.
Competition was tough, with 40% saying there was too much competition for jobs, rising to 53% for 18 to 34-year-olds.
Kevin Fitzgerald, UK managing director at Employment Hero, said: “While the labour market is showing early signs of recovery, our data shows we’ve still got a long way to go before workers feel confident again.
“With most people holding a negative view of the jobs market, it’s no surprise we’re seeing more ‘job hugging’ as employees look to weather the storm.
“But this isn’t a long-term solution. Job mobility is key for growth – both for people and businesses.”
Fitzgerald added: “Recent changes to the tax regime have also knocked confidence.
“The rise in employer National Insurance Contributions has had a ripple effect right across the economy, and we’re now at a critical juncture.
“As we head towards the Autumn Budget, avoiding more tax changes that trigger knee-jerk reactions from businesses will be vital if we want to build on the early signs of recovery.”
Nina Skero, CEO of CEBR, said: “Workers are facing a difficult balancing act – while pay growth remains strong, inflation continues to eat into real wages, and job opportunities are thinning out.
“With fewer roles to go around and growing competition for vacancies, Employment Hero’s data reveal that many workers are prioritising job security over ambition in an increasingly uncertain market.”
