The latest CIPD Labour Market Outlook confirms what many of us are already sensing: hiring confidence is softening.
The net employment balance is now at its lowest since the pandemic, and large employers in particular are pressing pause on growth plans.
But here’s the thing; this isn’t a crisis. It’s a recalibration.
Yes, rising employment costs and the proposed Employment Rights Bill are prompting some hesitation, but that hesitation can be healthy.
It gives employers space to rethink not just how they hire, but why, who, and what for?
In short: there’s an opportunity here. One that’s less about reacting to the market, and more about reshaping your talent strategy from the inside out.
What should employers be thinking about right now?
Here are three things worth considering:
Focus on skills, not seats
Instead of defaulting to ‘replace the leaver,’ now’s the time to reassess what skills your business actually needs to thrive. Role redesign, cross-functional upskilling, and talent pooling all have a place here.
Optimise the team you already have
Hiring may slow, but talent development shouldn’t. Double down on internal mobility, manager capability, and coaching — the ROI on retention is higher than ever.
Get future-fit, not just compliant
With employment reforms on the horizon, a solid people strategy isn’t just about ticking the legal boxes. It’s about building inclusive, progressive, and human-centred cultures that can flex and grow, whatever the market does.
A final word
It’s easy to interpret a hiring slowdown as a red flag. But smart employers will see it for what it really is: a window. A moment to pause, refocus, and build more intentionally for the future.
If that sounds like the kind of work you’re ready to do, we’re here to help.
Explore how our Talent Solutions can support you in building a hiring strategy that’s not just reactive, but robust.
Get in touch, and let’s design something that works, for your business and your people.
