ByDr. Tim Sandle
EDITOR AT LARGE
DIGITAL JOURNAL
August 22, 2025
Overview of the City of London. — Image by © Tim Sandle
As economic uncertainty continues to ripple across the UK, new data paints a sobering picture of how inflation, stagnant wages, and global instability are eroding financial well-being and career optimism among UK workers.
According to LiveCareerUK’s survey of over 1,000 UK employees, only 12% say their income has kept up with inflation. The findings reveal a nation bracing for tougher times, with rising anxiety around layoffs, recession, and technological disruption. Despite the stress, workers are eager for solutions, with 68% now supporting Universal Basic Income as a potential safeguard.
Key findings:89% are worried trade conflicts will further drive up prices.
75% cite inflation and cost of living as their top financial concerns in 2025.
65% are disillusioned with the idea that hard work leads to financial security.
58% expect more layoffs this year, while 89% fear a recession in the UK.
The May 2025 survey of over 1,000 UK workers reveals the profound impact of inflation on financial well-being and confidence in the labour market—and suggests a nation bracing for uncertainty ahead. Nearly half of respondents (47%) said they have had to cut back significantly to manage rising costs, while 11% are struggling to afford basic essentials like food, housing, or bills. Only 5% say they are better off financially than a year ago.
The survey collected responses from 1,004 UK workers and explored their views on inflation, recession concerns, job security, financial wellbeing, and broader economic and workforce issues. A variety of question formats were used, including yes/no questions, scale-based prompts to gauge levels of agreement or concern, and multiple-selection questions allowing respondents to choose from a list of applicable answers.
“The UK workforce is sending a clear signal—they’re under pressure, and their financial confidence is faltering,” Jasmine Escalera, career expert at LiveCareer tells Digital Journal.
“With 40% reporting regular financial anxiety and over half fearing layoffs, there’s a need for real solutions to support income growth, affordability, and upskilling in an evolving job market.”
Wages flatline
A substantial income gap is emerging as inflation continues to rise, according to the report. This is demonstrated in 39% of respondents saying their income has not kept up with inflation at all.
As a result, workers are making difficult financial choices, with 64% stating they have reduced discretionary spending (on things like travel and dining).
Trade tensions
Global instability is weighing heavily on household budgets. Here, 89% of workers are concerned that trade tensions or tariffs will increase the cost of living
Job security
The majority of UK workers feel unprepared for job loss. This is borne out by 54% indicating they could not go more than three months without income
August 22, 2025
Overview of the City of London. — Image by © Tim Sandle
As economic uncertainty continues to ripple across the UK, new data paints a sobering picture of how inflation, stagnant wages, and global instability are eroding financial well-being and career optimism among UK workers.
According to LiveCareerUK’s survey of over 1,000 UK employees, only 12% say their income has kept up with inflation. The findings reveal a nation bracing for tougher times, with rising anxiety around layoffs, recession, and technological disruption. Despite the stress, workers are eager for solutions, with 68% now supporting Universal Basic Income as a potential safeguard.
Key findings:89% are worried trade conflicts will further drive up prices.
75% cite inflation and cost of living as their top financial concerns in 2025.
65% are disillusioned with the idea that hard work leads to financial security.
58% expect more layoffs this year, while 89% fear a recession in the UK.
The May 2025 survey of over 1,000 UK workers reveals the profound impact of inflation on financial well-being and confidence in the labour market—and suggests a nation bracing for uncertainty ahead. Nearly half of respondents (47%) said they have had to cut back significantly to manage rising costs, while 11% are struggling to afford basic essentials like food, housing, or bills. Only 5% say they are better off financially than a year ago.
The survey collected responses from 1,004 UK workers and explored their views on inflation, recession concerns, job security, financial wellbeing, and broader economic and workforce issues. A variety of question formats were used, including yes/no questions, scale-based prompts to gauge levels of agreement or concern, and multiple-selection questions allowing respondents to choose from a list of applicable answers.
“The UK workforce is sending a clear signal—they’re under pressure, and their financial confidence is faltering,” Jasmine Escalera, career expert at LiveCareer tells Digital Journal.
“With 40% reporting regular financial anxiety and over half fearing layoffs, there’s a need for real solutions to support income growth, affordability, and upskilling in an evolving job market.”
Wages flatline
A substantial income gap is emerging as inflation continues to rise, according to the report. This is demonstrated in 39% of respondents saying their income has not kept up with inflation at all.
As a result, workers are making difficult financial choices, with 64% stating they have reduced discretionary spending (on things like travel and dining).
Trade tensions
Global instability is weighing heavily on household budgets. Here, 89% of workers are concerned that trade tensions or tariffs will increase the cost of living
Job security
The majority of UK workers feel unprepared for job loss. This is borne out by 54% indicating they could not go more than three months without income
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