UK Hiring Confidence Falls to 13-Year Low in June, Fastest Drop in Two Years Amid Payroll Tax Hike and AI Impact

UK employers' willingness to hire has fallen to its lowest level in 13 years, according to multiple surveys and reports including The Times and KPMG/REC. The decline in hiring confidence, the fastest drop in nearly two years, is attributed in part to the recent increase in payroll taxes and the impact of artificial intelligence on the labor market. Businesses are scaling back recruitment plans, particularly for roles likely to be affected by AI adoption. This slowdown in hiring activity reflects broader challenges in the UK labor market, which is experiencing reduced job market activity and cooling conditions as of June 2025. Meanwhile, in Japan, companies are addressing worsening labor shortages by leveraging alumni networks to retain contributions from former employees. Additionally, studies from Germany highlight that the retirement of baby boomers is expected to exacerbate labor market pressures, especially in certain professions, due to difficulties in finding replacements.