UK Workers Fear Burnout Amid Rising Employment Costs and Cutbacks

Nearly two-thirds of UK workers are apprehensive about burnout in 2025, as companies reduce resources to manage escalating employment costs, according to a new survey.

The 2025 Candidate Sentiment Survey, conducted by recruitment firm Robert Half between 30th December 2024 and 3rd January 2025 with over 1,200 UK workers, indicates that 62% of employees believe businesses risk overworking their staff this year. Additionally, 60% feel that companies prioritise profit and productivity over employee wellbeing.

The survey also highlights that 30% of workers are concerned that the recent rise in National Insurance Contributions (NICs) will pressure them to achieve more with fewer resources. It comes as the UK government implements changes to NICs from 6th April 2025, including an increase in the secondary Class 1 NIC rate from 13.8% to 15% and a decrease in the Secondary Threshold from £9,100 to £5,000.

Younger Workers at Greater Risk

Younger employees appear particularly vulnerable, with 37% of 18-34-year-olds worried that the NICs increase will lead to additional pressure to do more with less, the survey found. And 65% of this age group believe employers are at risk of overworking them in the coming year.

Matt Weston, senior managing director UK & Ireland at Robert Half, noted that most people think their employers’ priorities are misaligned.

“Our research shows that the majority of the workforce feel that their employers’ priorities are not in the right places, with 60% saying businesses are more concerned about profit and productivity than their people.”

He acknowledged the financial challenges businesses face, saying that “[n]onetheless, budgets are clearly tight at the moment and businesses are struggling to find ways to balance the books. In fact, according to our latest Hiring Intentions data, 68% of employers are concerned about budget constraints for the year ahead.”

Weston warned of the risks associated with giving employees too many tasks.

“While it’s understandable that employers are concerned with the additional staffing costs that they will incur this year, there’s a significant risk in over-burdening workers,” he said. “Aside from protecting staff’s mental wellbeing, businesses need to be mindful of the potential long-term impact on their employer brand as this could likely have a detrimental impact on staff engagement, morale and hiring in the future.”

Broader Economic Context

The survey’s findings align with broader economic trends. The UK’s employment landscape, previously robust despite economic challenges, faces significant strain due to increased NICs on employers. This has led businesses to freeze hiring, cancel investment plans and even prepare for job cuts to manage increased employment costs.

The NICs increase from 13.8% to 15%, alongside a rise in the national living wage and new employment rights legislation, has exacerbated business hesitancy. As a result, job vacancies have notably decreased, and firms are struggling to absorb costs without compromising employee wages or passing them onto consumers.

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