For countless jobseekers across the UK, the hunt for work has become an exercise in frustration and futility. The days of abundant vacancies and generous offers, which followed the COVID-19 pandemic’s initial shock, are now a distant memory. Instead, jobs applicants find themselves submitting hundreds, sometimes thousands, of applications, often without so much as a reply, let alone an interview. The odds have grown steeper: there are now fewer jobs available than at any point since before COVID-19, with more people than ever vying for each one.
Jobs Market Crashes
This squeeze is being felt across the board, but particularly by those in midlife and in sectors like HR, retail, and hospitality, where competition has reached record levels. Behind these grim statistics lie a perfect storm of factors: AI and automation steadily reducing demand for human labour, economic uncertainty prompting employers to freeze hiring, and government policies such as increased National Insurance contributions driving up business costs and further dampening recruitment.
The result? A jobs drought marked by falling vacancies, stagnating pay growth, and rising unemployment, a situation unseen in decades. For many, especially older workers or those trying to change careers, the reality is not just discouraging but deeply destabilising. As the economic landscape shifts beneath their feet, Britain’s workforce faces unprecedented challenges in finding secure employment.
Autumn Budget: What Can The Government Do?
Against this bleak backdrop, it is clear that the Government must urgently change direction if it hopes to steer the country out of economic stagnation (with zero GDP growth in July 2025). Accordingly, the upcoming Autumn Budget represents a critical opportunity, a chance for the Government to signal a new approach and put forward bold policies designed to revive growth, boost job creation, and restore confidence.
Without decisive action, the risk is not merely prolonged hardship for jobseekers but lasting damage to long-term economic prosperity. What is needed now is a comprehensive strategy that addresses both immediate pressures and underlying structural weaknesses.
So what can the Government do? Potential measures to help revive the economy include:-
- Reduce Taxes to Stimulate Economic Growth: Lowering taxes, especially for businesses, can immediately improve cash flow and incentivise investment, hiring, and expansion. By easing the tax burden on companies, the Government encourages entrepreneurship and attracts foreign direct investment. To offset revenue loss from reduced business taxes, a targeted increase in "sin taxes" (i.e. levies on products such as tobacco, vapes/e-cigarettes, sugary drinks, alcohol, gambling, and junk/fast food) can be implemented. These taxes typically do not harm economic productivity or job creation since they are levied on non-essential goods. This approach helps maintain public finances whilst fostering an environment where businesses can thrive, spurring wider economic growth and job opportunities.
- Rethinking The Employment Rights Bill: The proposed Employment Rights Bill includes measures that will add significant costs and administrative burdens upon employers. These measures need to be removed from the bill, as to do otherwise will simply lead to even more redundancies and deepen the economic downturn. A flexible labour market has historically enabled the UK to maintain low unemployment rates by allowing firms to quickly adapt to changing economic circumstances. Overly restrictive employment regulations risk undermining this flexibility, leading to higher unemployment and discouraging new job creation. Removing these burdensome elements from the Employment Rights Bill will help preserve jobs and support a dynamic economy.
- Completely Reverse The Increase In Employers' National Insurance Contributions: The recent hike in employers’ National Insurance contributions has been a total disaster. It directly increases the cost of employing staff, particularly impacting small-and medium-sized enterprises (SMEs). Huge numbers of redundancies have followed in the wake of the increase. Completely reversing this increase would relieve the pressure upon employers, freeing up resources for recruitment and investment.
- Reduce Welfare Dependency by Reforming Benefits: There has been a totally unsustainable rise in recent years in welfare dependency. The Office for Budget Responsibility (OBR) projects that spending on sickness and disability benefits will rise from £64.7 billion in 2023/24 (up from £46.3 billion in 2018/19) to £100.7 billion by 2029/30. That figure is so large, that 30% of revenue generated by income tax alone will be required to fund these benefits. The Government should revisit its earlier attempts at welfare reform, abandoned in June 2025, and introduce stricter eligibility criteria alongside robust support for those transitioning back into employment. This will not only reduce public spending but also increase workforce participation rates, whilst promoting individual self-sufficiency and economic resilience.
- Incentivise Private Sector Investment: To promote sustainable growth, the Government should introduce targeted incentives for private sector investment, such as enhanced capital allowances and R&D tax credits, that reward innovation and modernisation across industries. These incentives can stimulate productivity improvements and technological adoption while making the UK a more attractive destination for domestic and international investors. Encouraging private capital formation is essential for creating high-quality jobs and boosting long-term competitiveness in global markets.
- Boost Skills Training and Workforce Mobility: Addressing structural unemployment requires significant investment in vocational training, reskilling programs, and career transition assistance, especially for midlife workers displaced by automation or sectoral shifts (e.g., HR, retail, hospitality). The Government should partner with industry leaders to deliver practical training that aligns with current market needs. Improved access to lifelong learning opportunities will help workers adapt to changing demands while supporting sectors facing chronic skills shortages.
- Streamline Planning Laws to Accelerate Infrastructure Projects: Cumbersome planning regulations often delay critical infrastructure investments that could generate jobs and spur regional development. Simplifying these laws will enable faster delivery of projects in transport, housing, energy, and digital connectivity, sectors with strong ripple effects on employment and economic activity. Accelerated infrastructure rollout not only creates immediate construction jobs but also lays the foundation for future growth by improving national productivity and connectivity across all regions of the UK.
Seizing The Moment For Lasting Change
The upcoming Autumn Budget, scheduled for the 26th November 2025, is a pivotal moment for this country in terms of its economic future, one that demands bold leadership and decisive action. The challenges facing the jobs market and wider economy are stark, but they are not insurmountable. By embracing a new direction, lowering business taxes, reversing damaging policy missteps, reforming welfare, incentivising investment, and investing in skills, the Government can restore confidence and unlock growth.
The stakes could not be higher. Without urgent intervention, Britain risks entrenching unemployment and economic stagnation for years to come. However, with a forward-thinking strategy that tackles immediate pressures while addressing structural weaknesses, it is possible to revive the jobs market and lay the foundations for a more resilient, dynamic economy.
It is time for policymakers to put pragmatism over ideology and focus on what works: supporting businesses, empowering workers, and fostering innovation. The Autumn Budget must offer hope, not just for jobseekers struggling today, but for all those who want to see this country prosper tomorrow. With courage and clarity of purpose, the Government can chart a new course that delivers opportunity and economic security for everyone.
