{"id":3376,"date":"2025-09-17T09:56:23","date_gmt":"2025-09-17T08:56:23","guid":{"rendered":"https:\/\/www.robbtax.co.uk\/blog\/?p=3376"},"modified":"2025-09-17T08:56:46","modified_gmt":"2025-09-17T08:56:46","slug":"fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now","status":"publish","type":"post","link":"https:\/\/www.robbtax.co.uk\/blog\/fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now\/","title":{"rendered":"Fewer workers but higher wages \u2013 Is this what the UK job market looks like now?"},"content":{"rendered":"

There\u2019s plenty of pessimism about the UK jobs market at the moment, but not every change is a bad omen.<\/p>\n

<\/p>\n

With the Autumn Budget still two months away and many firms wary of making big moves, it is not a simple task to predict what comes next.<\/p>\n

Still, the data we do have points to an emerging pattern of fewer employees on payrolls, but meaningful pay growth for those who remain.<\/p>\n

We want to help you understand the ways you can adapt your business to keep pace with the changes in the UK job market.<\/p>\n

Is the UK jobs market in trouble?<\/strong><\/h3>\n

How you answer that depends on the metric you choose.<\/p>\n

HM Revenue and Customs (HMRC) data shows a fall in payroll employment with a drop of roughly 8,000 fewer people on payroll, contributing to 127,000 fewer employees on payrolls than a year ago.<\/p>\n

On the face of it, that sounds alarming.<\/p>\n

However, context matters and it is important to note that wages are still rising.<\/p>\n

The Office for National Statistics (ONS) reports that regular pay excluding bonuses grew by 4.8 per cent in the three months to July, down a bit from five per cent in the three months to June, yet still significant given the cost-of-living squeeze.<\/p>\n

On the whole, it seems that employers are trimming headcount while maintaining or even increasing pay for the staff they keep.<\/p>\n

That pattern could be reflecting some of the difficult choices that have been made recently.<\/p>\n

Rising employer National Insurance Contributions (NICs), hikes to the National Minimum Wage (NMW) and National Living Wage (NLW), and other statutory costs have all forced businesses to rethink labour strategies.<\/p>\n

Reducing the workforce can free up budget to retain key personnel with stronger pay and benefits, which in turn helps preserve capability and morale in a smaller team.<\/p>\n

What can you do if employee costs are becoming a concern?<\/strong><\/h3>\n

With the Autumn Budget looming, many organisations are understandably cautious about committing to long-term changes.<\/p>\n

In the meantime, businesses should focus on control and preparedness.<\/p>\n

It is imperative that they get a clear handle on payroll obligations and forecast likely costs under different Budget scenarios.<\/p>\n

We can help stress-test your payroll to show how pay rises, NICs and other changes impact your cashflow.<\/p>\n

Businesses should also consider the composition and capability of the team they retain.<\/p>\n

Strengthening pay and support for core staff can be a pragmatic way to manage overall payroll spend while keeping the talent you need.<\/p>\n

That does not mean leaving people to fend for themselves as there is still scope to invest in HR support, training and wellbeing so a smaller workforce can operate at full capacity.<\/p>\n

Automation, smarter rostering and productivity tools can reduce manual effort and allow a leaner team to achieve more without overtime or burnout.<\/p>\n

Where hiring is essential, flexible contracts and temporary resources can plug gaps without committing permanently to higher long-term costs.<\/p>\n

We\u2019re working with businesses to navigate rising employment costs through smarter payroll planning, benefits reviews and digital efficiency.<\/p>\n

If you\u2019re worried about the impact of headcount changes or need a payroll stress test ahead of the Autumn Budget, speak to our team.<\/p>\n

We\u2019ll help you balance compliance, competitiveness and the well-being of your people so you\u2019re ready for whatever comes next.<\/p>\n

For help managing your payroll obligations, speak to our team today!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s plenty of pessimism about the UK jobs market at the moment, but not every change is a bad omen.<\/p>\n","protected":false},"author":1,"featured_media":3379,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,89],"tags":[],"yoast_head":"\nFewer workers but higher wages \u2013 Is this what the UK job market looks like now? - Accountants in Sutton Coldfield<\/title>\n<meta name=\"description\" content=\"Robb & Co is an independent firm of chartered accountants and specialist tax advisors based in Sutton Coldfield, West Midlands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robbtax.co.uk\/blog\/fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fewer workers but higher wages \u2013 Is this what the UK job market looks like now?\" \/>\n<meta property=\"og:description\" content=\"There\u2019s plenty of pessimism about the UK jobs market at the moment, but not every change is a bad omen.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.robbtax.co.uk\/blog\/fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now\/\" \/>\n<meta property=\"og:site_name\" content=\"Accountants in Sutton Coldfield\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-17T08:56:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-17T08:56:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2025\/09\/shutterstock_2016568175-1024x651.jpg\" \/>\n<meta name=\"author\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Fewer workers but higher wages \u2013 Is this what the UK job market looks like now?\" \/>\n<meta name=\"twitter:description\" content=\"There\u2019s plenty of pessimism about the UK jobs market at the moment, but not every change is a bad omen.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now\/\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/fewer-workers-but-higher-wages-is-this-what-the-uk-job-market-looks-like-now\/\",\"name\":\"Fewer workers but higher wages \u2013 Is this what the UK job market looks like now? 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