How is the Recession Impacting the UK Workforce?

Could an economic recession threaten job security?

The chart above demonstrates to what extent the British workforce agrees or disagrees with the statements “A looming economic recession is a threat to my own job security” and “I would switch my industry of employment if my current industry was impacted by the recession.” As can be seen, the majority of workers feel the incoming recession is a threat to their job security with 50% saying that they agree with the statement. Similarly, the majority of UK employees (50%) agree that they would switch industries if their current industry of employment was impacted by the recession.

Looking to upskill to prepare for an uncertain job market?

Survey participants were asked to what extent they had looked, or were looking, to upskill in order to prepare for an uncertain job market this year. The majority (48%) of workers were not looking to undertake training to diversify their skill set. Approximately 46% of UK workers expressed either having already begun or wanting to upskill with 18% already undertaking some training, 16% hoping to undertake training, and 12% expressing a desire to undertake training, but unable to do so because their employer is not offering the chance for them to learn new skills.

Are workers undertaking training to counter the recession?

We asked respondents to rate how likely they were to undertake training. When workers are funding their own training, there are minimal differences between those likely (52%) and those unlikely (45%) to pursue training. However, when it comes to training funded by someone other than the worker (i.e., their employer), we see a rise in likelihood with 76% of workers saying they are likely to undertake training under these conditions. 

Why is the workforce not looking to upskill? 

The graphic above showcases the main reasons why British workers are not looking to undertake training to diversify their skill sets this year. By far the top factor identified by 51% of employees was a belief that their current skill sets would ensure employment if they were to lose their current jobs. Other top factors, identified by 21% and 16% respectively, were that workers did not have time to develop new skill sets outside of work hours and that employers could not afford to pay for training outside of work hours. Other notable findings showed that 15% of workers were unsure what skills they would need to be attractive to future employers, and that 14% felt their businesses were not offering them the chance to develop new skills. A further 5% of workers felt they did not know how to access training and 4% identified that any in-house training offered was unlikely to be recognized by future employers. 

When asked to what extent they had looked or were looking to upskill in order to prepare for an uncertain job market this year, 48% of workers were uninterested in diversifying their skill set. However, when you combine the 18% who have already started training to diversify their skill set with those who hope to (16%) and those who have the desire but not the opportunity (12%), that's 46% of workers, almost an even split between those interested and those not looking to undertake training.

In today’s competitive job market, where candidates hold the power, it is clear that employers who offer training to their employees will not only be a more attractive choice to potential candidates, but will also amass a more skilled workforce with workers keen to take up training that is on offer. In a previous Talent.com study on salary transparency, it was found that 20% of the UK workforce considered access to training and development plans as one of the most important factors when searching for a job.

Actions in response to the cost of living 

This bar chart demonstrates which actions members of the workforce are planning to take over the next six months in response to the rise in the cost of living. The majority of workers (45%) stated that they did not plan to do anything related to their jobs in response to the cost of living crisis. Many workers identified alternative actions such as developing a side hustle (18%), taking on one or more additional jobs (8%), or freelancing (4%) as ways to counter the rise in the cost of living.Additionally, employees identified asking their employer for a raise (19%), and taking on more hours (8%) as actions planned to be taken in response to the cost of living rises.  It is interesting that though 21% of employees who are not looking to undertake training to upskill reported having no time for training, a combined 10% of all employees will take on more or other work in response to the rising cost of living.

Why are workers taking action in response to the cost of living?

Participants who expressed a desire to take action over the next six months in response to the cost of living were asked to identify their main reason for wanting to do so. The data in the bar chart shows that the majority of respondents (43%) said that they required more income for everyday expenses, suggesting that managing daily expenses such as bills and groceries are a main concern for the workforce. The second largest group (30%) said they needed more income for discretionary spending such as holidays, and the third group (25%) expressed wanting to be able to contribute more of their income toward savings.

What are the working arrangements of UK workers in 2023?

British workers were asked to identify which of the statements listed was most applicable to their current working situation. The chart demonstrates the most common working situations. As we can see, 55% of workers have the option of remote work whether fully remote (21%) or hybrid working (35%). Though remote working is most common within the UK workforce a significant number of workers (23%) have employers who do not allow them to work from home. Additionally, many jobs undertaken by workers cannot be done remotely (21%). 

What is the likelihood of a full return to the office?

In this final chart, employees who partially or fully work from home were asked how likely they would be to go back to their places of work full time if they were asked. The majority of workers who partially or fully work from home expressed that they would be not at all or not very likely to go back to their places of work full time (56%), whereas 40% said they would be very or fairly likely to go back if asked. This shows that although the majority of workers anticipate retaining a fully remote or flexible working schedule, a significant number would also be likely to return to a fully in-person working pattern. 

Overall, the results of this survey echo those of a similar survey we conducted on the American workforce. Although the UK is expected to take a bigger economic hit, workers on both sides of the Atlantic express similar levels of fear regarding economic uncertainty and a similar eagerness to take action towards career advancements despite challenges. 

All figures, unless otherwise stated, are from YouGov. Total sample size was 1,005 workers in the private sector. Fieldwork was undertaken between January 26th and 31st, 2023. The survey was carried out online. The figures have been weighed and are representative of all business sizes.