The number of redundancies in the UK has defied doomsayer’ predictions and dropped a third in the last quarter, but a gloomy outlook means a rise is expected in the near future.
Employment law firm GQIlitter reported there has been a 32 per cent drop in workers being let go, falling fro 53,000 to 36,000.
The surprising figure comes amid a gloomy economic outlook dominated by soaring inflation.
This morning’s unemployment data from the Office for National Statistics also showed the 50-year low in unemployment among UK workers had been artificially pushed down as Brits exit the job market altogether.
GQ|Littler said the dip in redundancies shows the job market is resilient, but an eventual rise in people losing their jobs may be “inevitable” as firms try to come to grips with the cost of living crisis, and in particular, the steep rise in energy costs.
Caroline Baker, a partner at the firm said “the drop suggest that the tight labour market has made businesses reluctant to reduce headcount.”
“With corporate borrowing costs soaring since the mini-budget, that softly, softly approach to cost management might not be sustainable in the long-term.”
The number of planned redundancies has significantly dropped since the pandemic-affected 2020-21, which included 305,567 people let go from September to August 2021, compared to 157,895 to 2022.