Jeanette Wheeler, Chief People Officer, says:
“A fluctuating global market is putting a hold on UK business growth. Last month, the EY Item Club found the UK economy is set to slow sharply over the next two years, and S&P found that business activity across the UK has fallen for the first time in 18 months, ending a 17-month run of growth. Trump’s tariffs are casting concern on if and where businesses should invest, and we can only expect business confidence to worsen as the impact of the rise in employer NICs starts to be felt.
“This month’s ONS Labour Market figures reflect ongoing cautiousness regarding business investment, with the estimated number of vacancies falling by 42,000 on the quarter – marking the 34th consecutive quarterly decline, with quarterly falls seen in 13 out of the 18 industry sectors. Annual growth in employees' average regular earnings has also fallen from 5.9% in December 2024 to February 2025, to 5.6% in January to March 2025, and payrolled employment decreased by 33,000 employees (0.1%) in April 2025, when compared with March 2025.
“Business leaders are showing clear caution in talent investment, but paradoxically, will be unable to realise the potential of technologies such as AI and the opportunities this brings without investing in the right skills to scale its use. The UK government is facing a slew of business confidence challenges which it must continue to prioritise in order to secure future growth opportunities, in terms of jobs and investment, for Britain’s businesses.”
