Job losses across the UK are expected to rise again this year, with more than 327,000 roles forecast to be cut as employers continue to face mounting cost pressures and economic uncertainty.
New data shows redundancy warnings reached their highest level since the pandemic in 2025, with early figures for 2026 suggesting the trend is continuing rather than easing.
The figures reveal a labour market under strain, with businesses scaling back headcount amid weaker demand, rising operating costs and ongoing structural changes across industries.
Redundancy warnings hit post-pandemic high
Analysis by Liquidation Centre, a UK firm that advises businesses on company closures and solvent liquidations, found that 315,605 jobs were flagged for potential redundancy in 2025. That marked the highest annual total since 2020 and a 45 percent increase compared with 2021.
The data, obtained through a Freedom of Information request to the Insolvency Service, also showed redundancy payouts reached £477,709,323 last year, underlining the scale of workforce reductions.
Across the five-year period from 2020 to 2025, more than 2 million roles were put at risk through redundancy warnings, with June consistently emerging as one of the most severe months for job cuts.
Early indicators suggest the pressure has carried into this year. In the first two months of 2026, 736 employers filed advance notices of redundancy, putting 56,396 jobs at risk. That represents an increase of around 9 percent compared with the same period in 2025.
The number of HR1 forms, which employers must submit when proposing large-scale redundancies, reached 430 in February 2026. That is almost identical to February 2009, shortly before redundancies peaked during the global financial crisis.
Employers face sustained cost, demand pressures
The continued rise in redundancy warnings reflects a combination of economic and operational challenges facing businesses.
Liquidation Centre director Richard Hunt said employers were dealing with a more complex set of pressures than during the pandemic period, when job losses were driven by a single shock.
“Redundancies are happening at a rapid pace in the UK as the economy continues to change and industries adapt. including automation and AI,” he said. “Unlike in 2020, when redundancies were largely driven by a single crisis, the rise in redundancy warnings in 2025 appears to reflect more ongoing pressures on employers.”
That includes, he said, rising operating costs, wage inflation and policy changes like higher employer National Insurance contributions.
Hunt warned that 2026 was “shaping up to be an unfortunate record year for redundancies.
Increased competition, cost of living, taxation, and wage inflation are all key contributing factors. Global political uncertainty also often has a knock-on effect on businesses around the world, and the UK is no exception. Disrupted trade and supply chains, rising operating costs and poor business confidence are likely to add further strain for businesses.”
Outlook points to further job losses
Based on current trends and historical data, the analysis suggests that up to 327,227 jobs could be lost in 2026, representing a 3.7 percent increase on 2025.
While the projected rise is less steep than the increase seen between 2024 and 2025, it indicates that redundancy levels are likely to remain elevated rather than returning to pre-pandemic norms.
Because redundancy warnings are typically filed weeks or months before job losses take effect, the high volume of notifications recorded in 2025 is expected to feed through into confirmed redundancies during 2026.
The data also raises questions about how businesses manage restructuring in a labour market where economic pressures are combining with longer-term changes such as automation and changing demand across sectors.
As redundancy risks remain high, experts say organisations may need to place greater emphasis on workforce planning, redeployment and support for affected employees to navigate what is likely to be another challenging year for jobs.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
