CIPD Student Conference 2026

HR in Transition

The people profession in the UK stands at a pivotal juncture as 2026 unfolds. The Employment Rights Act 2025, which received Royal Assent in late 2025, represents Labour's flagship labour market reform package aimed at modernising employment protections. Major changes are rolling out throughout the year: trade union reforms commenced in February 2026, while April brings day-one rights to paternity and parental leave, removal of the lower earnings limit for statutory sick pay, and a doubling of protective awards for collective redundancy breaches to 180 days' pay. Further measures, including restrictions on fire-and-rehire, are scheduled later in the year or into 2027.

Employers are responding with caution. The CIPD's Labour Market Outlook for winter 2025/26 shows net employment balance at +7 overall but -11 in the public sector, with permanent hiring intentions subdued and many firms expecting the Act to inflate costs and heighten workplace conflict. Over a third anticipate reducing permanent recruitment, exacerbating a jobs market where vacancies have edged up marginally but redundancies stay elevated.

Young people are disproportionately affected, bearing the brunt of rising unemployment that reached 5.2% in late 2025—the highest since the pandemic's early days—with the 18-24 age group hit hardest ahead of youth minimum wage increases in April 2026. This comes against broader pressures: skills shortages persist in 85% of organisations, competitive pay demands challenge 88%, and building capable managers remains a top concern.

Meanwhile, rapid AI integration adds complexity. While AI promises productivity gains through job redesign, only a minority of HR teams hold strategic influence over its rollout, risking eroded trust—over half of workers express worry about job displacement. The profession itself is expanding, with chief people officer roles among the fastest-growing, yet practitioners face upskilling imperatives to shift from administrative to ecosystem-oriented contributions amid tighter budgets and hybrid work challenges.

These shifts create tensions: reforms promise greater security and fairness but risk deterring hiring and investment in a fragile recovery. The stakes are concrete—missed talent pipelines for employers, delayed career starts for graduates entering HR or related fields, and potential productivity drags if adaptation lags.