33% of companies intending to make redundancies

14 August 2020

In the Labour Outlook Market survey, published by the Chartered Institute of Personnel and Development (CIPD), in partnership with the Adecco Group, it has been confirmed that one in three employers are unfortunately planning to make redundancies by the end of September 2020.

2,000 organisations took part in the survey, and it appears that private sector firms have been affected more dramatically, with 38% confirming they will cut jobs, as opposed to 16% in the public sector. The number of overall redundancies has seen a jump of 11% since the last quarter.

On a positive note, hiring intentions are gradually starting to rise, but are at significantly lower levels than those observed in previous years.

 The survey has witnessed the lowest scores since it started being conducted using current methods, in terms of the net employment figure. The net employment figure relates to the proportion of employers intending to increase or decrease staffing levels. It has dropped from -4 to -8 but has remained high in sectors such as healthcare and public administration. The lowest levels were observed in hospitality, transport and storage, and retail.

The survey also highlights the fact that many companies are set to be stringent in terms of pay increases over the course of the next 12 months. Pay increase expectations were set at 1% overall – 0.8% in the private sector, and 1.7% in the public sector. The report also shows that 40% of private sector firms are planning to halt pay increases for the next 12 months.

The statistics may come as a surprise to some but are indicative of the economic turbulence caused by the outbreak of coronavirus.

CIPP comment

With so many companies intending on making redundancies, it is important to ensure that they get the process right, and that they pay employees that they are making redundant correctly. The CIPP has a redundancy factsheet, available to members.


The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.