We round up the latest employment news.
CIPD highlights uneven access to flexible work
A new CIPD report shows that flexible working is widely offered across UK organisations, but not all employees benefit equally. Key findings include:
- 91% of employers offer some form of flexible working
- 74% have hybrid working arrangements in place (a slight drop from 2023)
- Only 40% say most employees can access flexible working
- 30% of employees feel uncomfortable requesting flexible arrangements; and
- Around 1.1 million workers left jobs last year due to lack of flexibility.
Guidance to help employers close Gender Pay Gap
The Office for Equality and Opportunity and the Women and Equalities Unit have published a new report by the Behavioural Insights Team, offering fresh, evidence-based actions for employers to reduce their gender pay gap and promote gender equality in the workplace. This new report replaces the previous version and is now referenced in the updated statutory guidance on gender pay gap reporting.
The guidance highlights that:
- Greater gender diversity on shortlists leads to fairer outcomes for women
- Widening the applicant pool—by advertising roles more broadly and encouraging managers to consider internal candidates who haven’t applied—can help increase diversity; and
- Longer shortlists can boost gender representation.
UK job vacancies fall as market cools
The UK jobs market is showing signs of cooling, with vacancies dropping 5.8% to 718,000 between May and July, according to the ONS. Payroll numbers also fell slightly, down 8,000 from June to July.
Despite the slowdown, wage growth held steady at 5% and unemployment remained at 4.7%. Economists say rising business costs—such as the increased National Living Wage and employer National Insurance—are having a knock-on impact and firms are more cautious about hiring additional staff.
Hospitality and retail saw the biggest declines and this sector now favours experienced workers over younger (and cheaper) applicants.
Government predicts surge in demand for priority skills by 2030
Skills England published its latest report on the UK’s future employment needs. It forecasts a 15% rise in demand for key skills by 2030, driven by the UK’s Industrial Strategy.
Ten priority sectors—including digital, clean energy, adult social care, and housebuilding—are expected to see employment grow 1.6 times faster than other areas.
Nearly half of the current workforce is already working in a priority occupation, and over a quarter of a million people enter these roles annually through education and training. Apprenticeships and higher education are playing a vital role, with 80% of apprentices who have successfully completed their training moving into priority sectors.
Future State Pension age
The Department for Work and Pensions has launched a call for evidence to review the current state pension age. The review is required under the Pensions Act 2014, which mandates a pension age review every six years.
The review will consider:
- Whether to link the State Pension age to life expectancy
- How pension age affects the long-term sustainability of the system; and
- Lessons from international models, including Automatic Adjustment Mechanisms.
The call for evidence closes on 24 October 2025.
British people divided on pension planning
A recent study by Aviva has uncovered striking differences in how adults in the UK approach pension planning, with 44% saying they are ‘active planners’ and nearly 30% admitting to avoiding the topic altogether.
The research highlights a gender divide, with 54% of men considering themselves pension planners compared to just 35% of women. Income also plays a significant role: only a third of those earning £35,000 or less are engaged in pension planning, while over 80% of those earning above £125,000 take an active role.
Couples show mixed levels of collaboration, with 22% believing their partner handles pension planning and 13% admitting both partners procrastinate.
Skills shortage stalls AI progress
A new report reveals that UK businesses are eager to embrace artificial intelligence (AI), but don’t have enough staff with the skills they need to effectively adopt it. According to research 91% of organisations are ready to implement AI, yet one in three admit they lack the necessary skills to do so.
Despite 64% of leaders identifying AI as a strategic priority, fewer than half feel fully prepared to deploy it across key areas. Legacy systems, fragmented processes, and human error—particularly in data entry—remain major barriers. 14% of respondents confessed they don’t even know where to begin with AI.
Still, AI is already making an impact. Nearly two-thirds of organisations use it for financial forecasting, 60% for daily operations via Copilot, 58% for workflow automation, and 52% for content creation such as writing job descriptions and training materials.
Hospitality sector sees spike in tribunal claims
UK hospitality businesses are facing a surge in employment tribunal claims, driven by high staff turnover and casual contracts. A recent survey found the sector averaged 44.5 claims over two years which is 12% above the national average.
Discrimination and harassment were leading causes, with many grievances escalating due to poor internal handling.
Few employers actively hire ex-offenders
Only 16% of UK businesses have recruitment policies that proactively target ex-offenders, according to new research.
Among those who do hire ex-offenders, 95% report satisfaction with their performance, with over a third rating their work as excellent. Yet, barriers such as safety concerns, lack of references, and executive approval continue to deter wider adoption.
CEO pay hit record highs
Executive pay in the UK has reached new heights, with FTSE 100 chief executives earning more than ever before, according to the High Pay Centre. The latest figures show a widening gap between top earners and the average UK worker.
Key findings include:
- Median FTSE 100 CEO pay in the last financial year was £4.58 million, up nearly 7% from £4.29 million
- The average FTSE 100 CEO earns 122 times more than a full-time UK worker
- 84% of FTSE 100 firms awarded long-term incentive payments (LTIPs), up from 81% the previous year; and
- Median pay for female CEOs compared to male counterparts is £3.27 million vs £4.46 million.
Read more – August 2025
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