London Daily

Focus on the big picture.
Saturday, Nov 08, 2025

Jobs 'crisis' twice as bad as previous recession

Jobs 'crisis' twice as bad as previous recession

Employers in Britain are planning more than twice as many redundancies than they did at the height of the last recession, new figures show.

About 180,000 job cuts were planned from January to March 2009, while 380,000 were planned from May to July this year.

Completed redundancies could reach 735,000 this autumn, researchers say.

The figures were obtained by an Institute for Employment Studies (IES) Freedom of Information request.

Social distancing measures to prevent the spread of Covid-19 brought large parts of the UK economy to a standstill, forcing workers to stay at home, closing shops and bringing transport to a halt.

As a result, many businesses have been forced to consider reducing their workforces by making employees redundant.

Employers in England, Scotland and Wales must notify the Insolvency Service if they plan to make 20 or more workers redundant in any single "establishment" using a form called HR1.

This information is not usually published, but on 8 September a Freedom of Information request by the BBC revealed that employers had listed more than 380,000 positions as at risk between May and July 2020.



The IES has now obtained and analysed data stretching back as far as 2008.

This shows that the current redundancy wave is more than double the previous three-monthly peak of 180,000 from January to March 2009.

Then the crisis, which had begun in the finance industry, was affecting most of the economy - and forcing many employers to reduce their staff.

"Comparing what is happening now with what was happening in the last recession shows us we are experiencing a jobs crisis unlike anything we have seen before," said Tony Wilson, Director of the IES.

The IES is calling for extra support for viable firms to help them retain staff, as well as training and advice to help those who lose their jobs find new employment rapidly.

A government spokesperson said: "Supporting jobs is an absolute priority which is why we've set out a comprehensive 'Plan for Jobs' to protect, create and support jobs across the UK by providing significant, targeted support where it is needed the most."

Government measures include the £2bn "kickstart scheme" to encourage employers to create new training placements and apprenticeships, extra work coaches in job centres, and a £1,000 incentive to encourage employers to bring staff back from furlough.


Will these planned redundancies be completed?


Because they are filed at the start of the redundancy process, HR1 forms give an early indication of what is happening in the labour market.

The HR1 redundancy figures don't pick up employers cutting fewer than 20 jobs, so the final total of redundancies is usually higher.

The Office for National Statistics also publishes a redundancy count based on the Labour Force Survey, which is used to calculate the monthly unemployment rate.

This is always published a few months after the data is gathered, so it hasn't yet picked up a big spike in redundancies or unemployment.



However, Labour Force Survey redundancy figures have been around 20% higher than HR1 figures in recent years.

On this basis, the IES estimates that 445,000 jobs could be made redundant between July and September, considerably worse than the three-month peak in the previous recession.

During that recession, however, actual redundancies were 80% higher than notified redundancies - which could lead to as many as 735,000 positions being cut at the height of the coronavirus crisis.

However, companies sometimes announce plans redundancies which they don't actually make, because circumstances change.

Early 2019, for example, saw a big spike in redundancy plans which were never completed. Mr Wilson believes they could have been linked to fears of a no-deal Brexit, which did not happen.

The 2018 spike could be linked to the collapse of the construction company Carillion, which had a lesser impact on jobs than initially feared.

Companies in Northern Ireland file HR1 forms with the Northern Ireland Statistics and Research Agency and they are not included in these figures.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
×