We are aware of current scams impersonating recruitment agencies including ourselves targeting jobseekers over whatsapp and asking them to supply personal details.
Please be aware that The Recruitment Group will never ask you for your personal information via Whatsapp and anyone claiming to be from The Recruitment Group doing so is part of a scam. We also never advertise jobs through Whatsapp.
For more information please click here
UK Labour Market Shifts: The Trends Redefining Recruitment in 2025
The UK labour market continues to evolve and in today’s environment, attracting and retaining the right talent has never been more important.
Here are a few of the latest recruitment trends shaping hiring strategies across the industrial and commercial sectors:
✅ Only 57% of UK private sector employers plan to recruit in the next 3 months, a record low, largely driven by rising employment costs, inflation, and cautious forecasting
✅ Job vacancies have dropped for the 10th consecutive quarter, falling below pre-pandemic levels as some businesses reduce headcount or delay hiring
✅ Meanwhile, private-sector wages continue to grow at around 5% year-on-year, keeping pressure on margins and compensation strategies
✅ Candidate activity peaked in Q1, with job applications up 6% and placements up 23%, but applications fell by 27% in Q2, indicating a tighter, more passive talent pool
With the market shifting rapidly, employers are facing a new challenge: how to do more with fewer applicants, and how to hold onto their best people in a competitive landscape.
Key Labour Market Statistics – July 2025
-
Youth unemployment remains high: 31.6% for 16–17 year olds and 12% for 18–24 year olds.
-
Employment rate: 75.3%, with 34.2 million people in work.
-
Economic inactivity: 21%, down 404,000 compared to 12 months ago, though still 557,000 higher than pre-pandemic levels.
-
Vacancies: Dropped by 44,000 to 718,000, the 37th consecutive quarterly decline, now below pre-Covid levels. There are now 2.3 unemployed people per vacancy.
-
Payrolled employees: Early estimates show a decrease of 164,000 (0.5%) year-on-year and 8,000 month-on-month, to 30.3 million.
-
Pay growth: Annual growth in regular pay without bonus was 5%, and with bonus 4.6%. Adjusted for inflation (including housing costs), regular pay grew 0.9% and total pay 0.5%.
-
Claimant count: Fell slightly to 1.695 million.
-
Redundancies: Down slightly on the quarter and the year, at 3.6 per thousand employees.
-
Labour disputes: An estimated 38,000 working days were lost due to industrial action in June 2025.
What This Means for Employers
-
Retention is critical – With fewer applicants and fewer vacancies, keeping your best people engaged is more important than ever.
-
Smarter recruitment strategies – Quality hires over quick fixes will make the difference.
-
Flexibility attracts talent – Offering competitive salaries, hybrid working, and clear career progression will help employers stand out.
What This Means for Job Seekers
-
Competition is intensifying – With vacancies falling, preparation is key.
-
Applications matter more – Tailored CVs and strong interview skills will set candidates apart.
-
Recruitment agencies provide an advantage – Agencies like ours connect job seekers to hidden opportunities and offer ongoing support.
At The Recruitment Group, we monitor labour market data closely so we can provide timely, practical advice to both employers and candidates. Whether you are navigating recruitment challenges or looking for your next role, we are here to help you succeed.
Get in touch with Karinna Shields today on 07842 317516 to see how we can support your business or career in this shifting market.