Workers ‘disillusioned’ by recent pay inflation: That pay rise isn’t coming

- 63% of workers are confident in their job prospects for the next six months
- But 70% are finding it more challenging to negotiate a pay rise
- 44% of businesses funnelling budgets into technology to enhance productivity instead

After a year of pay exceeding inflation, the tables seem to be turning on worker pay expectations as employers take stock of regulation and tax hikes. That’s according to the latest data from international recruitment expert, Robert Half.

Data from the firm’s latest Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr) - revealed that 63% of workers are confident in their job security for the next six months. However, a slowdown in real wage growth and an eight-point drop in the pay confidence pillar of the Index indicates that the tide is turning for workers – with the power shifting back to employers.

Additional statistics from Robert Half further indicate a reversal in remuneration growth potential. According to its 2025 Salary Guide, 70% of workers are finding it more challenging to negotiate a pay rise compared to last year. Employees do, however, feel they deserve an increase, whether that’s due to the growing costs of living (39%), because they expect it every year (29%) or due to exceeding performance goals (25%)

Employers are seemingly less willing to further add to employment costs, focusing instead on improving productivity. Data from the firm’s 2025 Salary Guide revealed that 44% of businesses are planning to implement automation and digital transformation to enhance productivity, while 40% are optimising workflow management.
According to Robert Half, with increases to National Insurance Contributions (NICs) also adding to financial pressures, it is less likely workers will get the pay rise they want in the New Year.

Matt Weston, Senior Managing Director UK & Ireland, at Robert Half commented:

“Workers have seen high wage growth in response to the cost-of-living crisis, which has led to a level of expectation among employees of continued pay rises. The reality, though, is that many firms simply can’t sustain this, particularly with NICs set to increase.

“Given that the UK’s productivity levels have remained stubbornly low, we are seeing a growing number of companies looking at ways to streamline current operations and better utilise resources. This is likely to continue until the economic climate settles from the recent upheaval we’ve experienced. However, that’s not to say that workers will lose out overall. The proposals in the Employment Rights Bill and a general recognition within the business community that advanced perks and benefits are a must in the modern world, mean that employees will reap the rewards beyond their pay packets.”

Ends
Press contact
Vickie Collinge
vickie@bluesky-pr.com
01582 790705

About the research

In partnership with the Centre for Economics and Business Research, the quarterly Robert Half Jobs Confidence Index is the most authoritative report on the key socio-economic factors influencing confidence in the UK labour market.

The Jobs Confidence Index (JCI) is made up of four equally weighted pillars, each measuring a factor which contributes to jobs confidence. These are:
1.Job security confidence
2.Pay confidence
3.Job search and progression confidence
4.Macroeconomic confidence

The JCI takes a positive or negative number, where numbers above zero signal that jobs confidence is higher than the long-term average, and numbers below zero show it is lower. The JCI can take any number, but it usually stands between -30 and 30, showing that confidence is close to a
normal level when it is within this range.



About Robert Half
Founded in 1948, Robert Half is the world's first and largest specialised talent solutions consultancy, working to fill professional services roles at all levels within the finance and accounting, banking, technology, HR, marketing and legal sectors. The company has more than 300 staffing locations worldwide and offers hiring and job search services at www.roberthalf.co.uk

Robert Half understands that it takes time and effort to evaluate the best talent strategy for different businesses. For further independent advice to assist with your recruitment and workforce planning efforts, visit www.roberthalf.co.uk/advice.