UK unemployment reaches highest levels in four years: Is it time to use technology to manage your scaling ambitions?

Data shows that more than 250,000 jobs have been lost in Britain since Rachel Reeves’s autumn budget, representing the highest levels of unemployment in nearly four years.

To make matters worse, HMRC figures have indicated that the number of workers on company payrolls fell by 109,000 in May alone, the highest monthly fall since the same period in the midst of the 2020 COVID-19 lockdown.

One of the biggest challenges facing employers is the need to juggle the Autumn budget’s £25 billion increase in employer national insurance contributions (NICs), which have affected more than 1 million companies since it came into effect in April this year.

This data suggests that employers may be facing new challenges when strategising their scaling ambitions in 2025. However, use cases are emerging that suggest it’s possible to utilise technology to not only tap into the UK’s growing available talent pool but also to scale sustainably despite widespread employee layoffs.

With this in mind, let’s explore the ways in which technology is helping more British businesses to scale their operations during a period of historically high unemployment:

Data-Driven Insights

Thanks to advancements in artificial intelligence and machine learning, employers can benefit significantly from the age of big data.

Insights can empower more business decision-makers to identify trends, track performance, and shape perspectives on how to effectively scale operations in a more time-efficient manner.

Big data analytics can transform the collection, storage, and analysis of large volumes of information, which can be recalled in a matter of seconds. The use of dashboards and other visual presentation tools can also make it far easier to interpret available data to shape strategic decisions focused on business growth.

From anticipatory insights such as seasonal sales forecasting to predict how many new staff members to onboard to exploring which demographics are most likely to be receptive to a new marketing campaign, data can empower businesses to expand in the most cost-effective and measured way.

AI Recruitment

Artificial intelligence can also enable businesses to tap into broader talent pools to recruit the most talented prospects to shape their scaling strategy.

Adopting and using AI in HR can help to automate tasks such as screening high volumes of CVs, scheduling interviews, and communicating with candidates.

In turn, this helps HR teams to spend less time on administrative tasks and more time on discovering the best available talent for job roles.

At a time when the UK jobs landscape is shifting more towards an employer’s market, AI-powered candidate screening can provide recruiters with powerful support in identifying the best prospects for shortlisting and onboarding.

Embracing the Cloud

The great thing about cloud computing when seeking to scale your business operations in a sustainable manner is that it’s easy to fine-tune your requirements in an unpredictable market environment.

At a time when more employers are seeking to downsize their workforce, tools like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud provide on-demand resources that can be quickly scaled up or down based on specific business needs.

This means that you can grow your computing power, storage, and services based on whether you’re continuing to scale, or the wider macroeconomic environment is causing you to temporarily shrink your operations to secure your long-term viability.

The convenience of cloud computing means that business decision-makers no longer need to pay upfront for costly physical hardware that may jeopardise their future cash flows.

Simplified Onboarding

Building a workforce that’s ready to help you scale is especially challenging at a time when uncertainty is impacting markets. This calls for your new recruits to learn the ropes effectively and quickly.

If you’re ready to step up your scaling ambitions, you can incorporate technology to create a smoother onboarding process.

In adopting the right solution for your needs, it’s possible to allow your team members to complete paperwork, study house styles, embrace the company culture, and even embark on virtual office tours to get them up to speed faster.

Frictionless Project Management

Your productivity tools will also need to be up to scratch when scaling your operations. Whether you’re using a dedicated project management system or a more general platform, creating a frictionless environment where all team members gain a holistic view of projects and key operations can pave the way for greater efficiency.

Adopting project management solutions like Monday, Trello, Asana, or Hive can make all the difference in welcoming greater workloads without overwhelming your existing staff. It also helps you to set yourself up for more sustainable growth into the future.

Scaling in Challenging Times

Rising unemployment figures can often be a warning sign for companies with scaling ambitions, but by embracing the right technologies, you stand the best chance of succeeding through a sustainable approach to growing your operations.

Different businesses and industries can require various considerations, but advancements in AI and cloud computing have paved the way for the opportunity to make more measured judgments when it comes to scaling.

With the right digital strategy in place, you stand the best chance of growing your business even during periods of economic uncertainty. This can help to keep your business thriving long into the future.