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UK employers are bracing for the largest wave of layoffs in a decade, according to a survey by the Chartered Institute of Personnel and Development (CIPD), which indicates that redundancy intentions are at their highest level since the COVID-19 pandemic. The survey, which questioned 2,000 employers, reveals that escalating costs from planned tax increases and a 6.7% rise in the national living wage have contributed to this decline in business sentiment.
The economic outlook has worsened amid reports suggesting a rise in both inflation and unemployment rates, with projections indicating inflation may hit 2.8% in January, up from 2.5% in December. Peter Cheese, CIPD's chief executive, stated, "Employer confidence has been impacted by planned changes to employment costs."
Additionally, the Federation of Small Businesses reported a significant decline in small business confidence, with a drop from -24.4 to -64.5 points on its confidence index. The British Beer and Pub Association noted that six pubs are closing weekly, resulting in approximately 4,500 job losses across the sector.