UK workforce confidence is crumbling under the weight of economic instability, technological disruption, and rising fears of redundancy—posing a serious threat to business growth and national productivity, according to new data from ManpowerGroup’s Global Talent Barometer.

The survey of nearly 14,000 workers across 19 countries—including over 1,000 in the UK—paints a picture of rising anxiety and falling engagement, with over a third (34%) of UK senior managers fearing they could lose their jobs within the next six months.

This fear is not confined to leadership. A staggering 86% of UK managers identify economic instability, corporate restructuring and mass layoffs as the top threats to their careers. At the same time, 41% of UK workers fear automation could replace their roles altogether.

“For months, the focus has been on how changes to National Insurance Contributions, the National Minimum Wage and broader economic pressures are affecting businesses,” said Anna Spaul, Director of Data Innovation at ManpowerGroup UK. “But the real impact is being felt by workers—and that impact is worry. Employees are grappling with uncertainty on all sides, from rising living costs to shifting legislation and rapid technological change.”

This rising unease is already having tangible effects. Hiring confidence across the UK has dropped 12% in Q3, while only 47% of workers have undertaken any training in the past six months—despite growing fears that their skills are becoming obsolete.

“Confidence is no longer a soft metric—it’s a core indicator of workforce strength and economic performance,” Spaul added. “When confidence erodes, so does creativity, adaptability and growth potential. Without action, businesses risk not just talent loss, but transformation paralysis and a weakened competitive edge.”

The report finds that Millennials, once dubbed the “purpose-driven” generation, are now among the most dissatisfied in the labour market. Nearly one in five UK workers (18%) say they dread going to work each day, with Millennial women reporting the sharpest decline in job satisfaction over the past year.

Workplace mandates are compounding the pressure. Two-thirds (66%) of UK workers are now required to return to the office at least part of the week, but 8% say this could force them to leave their roles. Inflexible working models, in the face of widespread instability, risk pushing away skilled talent at a time when retention is critical.

Despite the bleak outlook, Spaul is clear: there’s still time to act.

“We’re not at the point of no return,” she said. “This is an opportunity for employers to rethink their workforce strategies—invest in upskilling, adopt more flexible work models, and reconnect employees with purpose and stability. Confidence must become a business priority, not just an HR issue.”

As UK businesses face down a challenging second half of 2025, the message is clear: building a confident, future-ready workforce isn’t just good for morale—it’s vital for resilience, innovation, and long-term growth.