A JOB cut and hiring freeze bloodbath is about to hit the UK – here is what YOU can do to protect yourself.
Bosses in Britain’s private sector are expected to cut the number of new roles advertised and headcount over the next three months.
The damning figures were revealed in a new report by the Confederation of British Industry (CBI). The data was based on a survey of 909 companies between October 24 and November 13.
A number of sectors expect to take a bruising, including manufacturing and distribution sales.
Private sector companies have already reduced their headcount over the past year following Chancellor Rachel Reeves’ £40billion tax raid in the 2024 Budget.
The report revealed that businesses’ plans to hire started to dip into negative territory in November 2024 and have maintained the decline since then.
Alpesh Paleja, the deputy chief economist at the CBI, said that uncertainty ahead of the Budget caused many businesses to hold back on hiring.
Plus, he added that businesses had faced a backdrop of “persistent cost pressures” throughout the year.
Business, including the hospitality sector, warned of job losses and a hike to costs after the Chancellor raised National Insurance contributions and increased the minimum wage.
Earlier this year, businesses were asked to pay higher rate of employer National Insurance contributions (NICs) of 15% from 13.8%.
Figures from the Office of National Statistics, (ONS) also show that unemployment hit a four year high in September.
Meanwhile, the number of payrolled employees fell by 32,000 between August and September 2025.
Reeves revealed in her Budget last week that workers aged 21 and under are in line for an inflation busting pay increase come April.
Come next Spring, 18 to 20-year-olds will see their pay increase by 8.5% to £10.85 per hour.
The National Living Wage will also go up by 4.7% to £12.71 per hour for workers aged 21 and over.
It is another hammer blow to businesses already struggling with the cost of keeping workers on the pay roll.
At the time, it was warned that increasing the National Living Wage could mean that companies slam the brakes or slap a freeze on hiring.
This is just one of many measures in the Budget as Reeves looking to plug an economic black hole.
Other measures include a cap on how much you can save through salary sacrifice before you are hit with National Insurance.
Meanwhile, income tax thresholds have been frozen again costing workers £8billion in stealth taxes.
The Sun has contacted The Treasury for comment.
How to protect YOURSELF
There are steps you can take now to prepare yourself in case you suddenly lose your job.
Martyn James, consumer expert, said to go through your bank, credit card repayments and phone bill and look for any regular payments (monthly and annual) that you don’t want or need and cancel them.
Another step you should take is to build an emergency fund with enough cash to cover at least three to six months of essential expenses.
Laura Suter, director of personal finance at AJ Bell, said if you’ve got spare cash, use it to clear expensive debt like credit cards or loans.
“Tackle the highest-interest balances first, then work your way down. Reducing this burden can make a big difference if your income drops.”
The expert said if you don’t have spare cash, focus on lowering the cost of your debt instead.
“Speak to your bank about any support they offer and check whether it’s the right move for you, she added.
“Otherwise, look at shifting your balance to a cheaper rate: a 0% credit card or lower-rate loan can free up more money to pay off the actual debt, not just the interest.”
You should also update your CV and think about income protection options.
With unemployment on the rise, now is a good time to look at your contract and check what your notice period is in case you want to quit or you are made redundant.
If you’ve worked for your employer for at least two years then you are entitled to statutory redundancy pay, a paid notice period and any untaken holiday pay.
The amount of redundancy pay you will get depends on your age and length of service.
