Nearly 8 in 10 UK Workers Fear Job Loss in 2026 as Redundancy and Recession Concerns Rise
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Economic uncertainty is becoming an increasingly dominant concern for workers across the UK. As businesses navigate ongoing financial pressures and the cost of living remains high, many employees are questioning how secure their jobs really are.
A new survey of UK employees, conducted by MyPerfectCV, explores how workers are feeling about job security and the wider economic outlook in 2026.
The findings from the UK Job Security Report 2026 reveal a striking level of anxiety: nearly 79% of workers are worried about losing their job this year, while 92% fear the UK could enter a recession. As concerns about redundancies and unemployment grow, confidence in the labour market appears increasingly fragile.
Key Findings
- Job insecurity is widespread: 79% of UK workers say they are worried about losing their job in 2026.
- Concerns are rising: 69% say they feel more worried about job security than they did last year.
- Redundancies are expected to increase: 82% believe layoffs are likely at their organisation, and 63% think redundancies across the UK will rise in 2026.
- Workers expect unemployment to grow: 77% believe the UK unemployment rate will increase this year.
- Recession fears are widespread: 92% say they are concerned about the UK entering a recession in 2026.
- Cost-of-living pressures remain a top concern: 59% worry their pay will not keep up with costs, while 58% cite the cost of living as a major worry.
Job Security Concerns Are Increasing
Workers report significantly higher levels of job insecurity compared with the previous year. Compared to last year, UK workers say they feel:
- More worried — 69%
- About the same — 19%
- Less worried — 12%
In total, nearly 7 in 10 workers say they feel more worried about job security than they did in 2025.
What this means: Workers now feel more uncertain about job stability than they did in 2025, indicating a general decline in confidence in the labour market. This suggests that employee sentiment is being shaped by both internal company changes and external economic conditions.
Workers Expect Redundancies to Rise
Many workers believe layoffs will increase both within their organisations and across the broader economy. When asked how likely redundancies are at their organisation in 2026:
- Very likely — 45%
- Somewhat likely — 38%
- Not likely — 17%
Looking nationally, nearly two-thirds of workers believe redundancies will increase this year:
- Increase in 2026 — 63%
- Stay about the same — 25%
- Decrease — 12%
What this means: UK workers are bracing for organisational change. The expectation of layoffs suggests that employees anticipate cost-cutting measures and restructuring across industries.
Workers Fear Rising Unemployment and Business Closures
Workers are also concerned about the broader economic outlook for the UK. When asked about the labour market:
- 77% believe unemployment will increase in 2026
- 13% believe unemployment will decrease
- 10% think it will remain about the same
Meanwhile, many workers expect continued strain on businesses:
- More businesses will close — 51%
- About the same number — 34%
- Fewer businesses will close — 15%
What this means: Workers are not only worried about their own roles but also about the resilience of the wider economy. Expectations of rising unemployment and business closures point to a lack of confidence in short-term economic recovery.
Biggest Concerns for UK Workers in 2026
Economic pressure remains the dominant concern for many workers entering the new year:
- Pay not keeping up with costs — 59%
- Cost of living — 58%
- Not being able to find a new job if needed — 43%
- Losing my job — 39%
- Burnout or mental health — 31%
- Lack of career progression — 15%
What this means: The findings suggest that financial stability and job security remain top priorities for UK workers as they navigate an uncertain economic environment. Concerns about income, affordability, and job prospects are closely interconnected, creating a broader sense of instability.
The UK Job Security Report 2026 highlights a workforce that is increasingly uneasy about the future. Concerns about redundancy, unemployment, and economic slowdown are shaping how workers view their careers and financial stability this year. Ultimately, the outlook for 2026 will depend not only on economic conditions, but also on how employers respond – whether through transparency, support, or proactive workforce planning.
Methodology
The findings presented in this report are based on a regionally representative survey conducted by MyPerfectCV from January 7-10, 2026. The survey collected responses from 804 full-time employed adults in the UK across a mix of industries and career levels. Respondents answered a mix of yes/no, single-selection, and multiple-choice questions covering expectations about job security, labour market trends, workplace wellbeing, pay, and career plans for 2026.
About MyPerfectCV
MyPerfectCV CV maker provides tools and guidance to help job seekers create a CV and present their professional experience clearly. The platform includes a CV builder and cover letter builder with pre-written templates, CV examples, and step-by-step guidance designed to simplify the process of writing a job application online. Since 2013, MyPerfectCV has provided career solutions by explaining how to write a CV, seek high-paying jobs in the UK, and ace popular job interview questions. Insights and employment-related research from the MyPerfectCV team have been featured in media outlets including BBC, The Times, City A.M., and Startups.
Jasmine Escalera
Career expert
Jasmine is a certified career coach providing career advice on My Perfect Resume & My Perfect CV sites.
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