UK Redundancies Expected to Rise to 327,000 in 2026 as Cost Pressures Mount
New data shows 2025 saw the highest redundancy warnings since the pandemic, with 315,605 jobs at risk. Early 2026 figures suggest the trend is continuing, with forecasters predicting up to 327,000 job losses this year amid rising operating costs and weak demand.
Redundancy warnings reached their highest level since the pandemic in 2025, with early figures for 2026 suggesting the trend is continuing rather than easing. 2025 was the most severe year for redundancy warnings since 2020, with 315,605 jobs flagged for potential redundancy and redundancy payouts totalling £477,709,323.
2026 Outlook Worsens
Job losses across the UK are expected to rise again this year, with more than 327,000 roles forecast to be cut, representing a 3.7 percent increase on 2025, though redundancy levels are likely to remain elevated rather than returning to pre-pandemic norms.
By the end of 2025, unemployment in the UK rose to its highest level in almost 5 years, reaching 5.2% in the final quarter of the year. In the first two months of 2026, 736 employers filed HR1 notices, placing 56,396 jobs at risk of redundancy – a 9% increase compared with the same period in 2025, and given that HR1 filings typically precede job losses by weeks or months, this suggests redundancies are likely to continue rising throughout the year.
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, raising questions about how businesses manage restructuring in a labour market where economic pressures are combining with longer-term changes such as automation.
For foreign workers and expats, rising redundancies increase the risk of job loss, particularly in roles vulnerable to automation. If you are on a visa sponsored by your employer (Skilled Worker or other routes), ensure you understand your visa conditions regarding a change of employer or redundancy. Start building a network now and monitor your industry for stability. If made redundant, you have limited time to secure a new sponsor or face visa expiry. Consider upskilling in resilient sectors such as healthcare and skilled trades.
Sources
MyHAbroad is an independent app and is not affiliated with, endorsed by, or representing any government or public authority. This is general information only — not legal, tax, medical, or financial advice. Always verify with the official source before acting:
