43,000 jobs lost in December 2025 as businesses struggle with rising costs
The pressure UK businesses face from rising costs is resulting in increasing job losses, say leading audit, tax and business advisory firm, Blick Rothenberg.
Calum Blois, a manager at the firm, said: “Recent increases to business rates, National Insurance contributions and energy costs are being reflected in the labour market. The Office for National Statistics (ONS) latest UK employment statistics show a further 43,000 jobs were lost in December, the fourth consecutive monthly decline in the number of people employed in the UK, while the unemployment rate remained unchanged at a four-year high of 5.1%.”
He added: “The chancellor, Rachel Reeves commented earlier this month that the recent FTSE100 record high was ‘a vote of confidence in Britain’s economy’, however around 75% of the FTSE100 companies’ revenues come from overseas. This means that the index’s surge reflects global trends rather than domestic economic strength, masking the reality that UK businesses are struggling under mounting cost pressures.”
Calum said: “Workers are undoubtedly paying the price. Many UK companies are reviewing hiring decisions, pausing recruitment, and some sectors, particularly retail and hospitality, are seeing accelerated job losses. Fewer people in employment results in lower tax receipts and reduced public spending, which in turn fuels further unemployment, a vicious ‘doom loop’ that threatens further job losses.”
He added: “Businesses are increasingly adopting automation and AI to reduce costs. Young graduates and school leavers continue to bear the brunt of this, entering a job market with fewer opportunities.”
Calum said: “The ONS’s latest figures send a clear message: UK businesses need help with rising costs and these pressures are putting jobs at risk. To break this cycle, businesses need targeted support, such as relief on business rates or further employment incentives. Without action, the cost crisis will continue