A recent report from S&P Global reveals early signs that UK workers may be feeling less secure in their roles – and it’s a signal employers can’t afford to ignore.
While the overall labour market remains relatively stable, the data shows that job security sentiment has dipped below the neutral 50 mark for the first time in five months. This shift highlights a growing sense of caution among UK households and suggests we're entering a new phase in workforce confidence.
Key Trends in the Labour Market
Metric | May | June | Change |
|---|---|---|---|
Job Security Sentiment | 50.9 | 49.2 | 5-month low |
Workplace Activity | 54.3 | 53.8 | Softening |
Income from Employment | 53.4 | 53.0 | Slower growth |
Overall Labour Market Sentiment | 52.9 | 52.0 | 3-month low |
What's Changing in the Labour Market?
Here are the key trends every employer should be watching:
Employees are feeling less secure in their jobs.
This might mean better short-term retention as people hesitate to move, but it also points to rising anxiety. When confidence falls, morale and productivity can take a hit.
Hiring strategies may need a rethink.
With demand starting to show signs of softening, some employers could delay permanent hiring. But here's the catch: top talent is still on the move – especially in skills-short sectors like engineering and manufacturing. For the right opportunity, they’re open to change.
Contract and flexible hiring is on the rise.
To navigate economic uncertainty, businesses are leaning more towards interim, project-based, and transformation roles. This flexible approach offers agility without long-term commitment.
Messaging matters more than ever.
When job security is shaky, how you present your company counts. A strong employer brand that communicates stability, direction, and growth can be a powerful tool in attracting and keeping great people.
Why It Matters
Unemployment may still be historically low, but a shift in how people feel about their job prospects can shape behaviours in big ways. This is an opportunity for employers to:
Monitor and respond to evolving workforce sentiment
Offer clarity and reassurance in their recruitment messaging
Stay flexible in hiring approaches without losing sight of long-term talent needs
In short, it’s a time to combine agility with assurance. If your business can offer both flexibility and a clear sense of stability, you’ll stand out in a market where uncertainty is on the rise.