Hiring Demand Cools as Vacancies Dip
What Employers & Jobseekers Need to Know Now
Vacancies are down, and the hiring climate is adjusting.
📉 Job openings have dropped to 761,000 – the lowest since 2020, and the 34th consecutive quarterly fall. 👥 There are now two job seekers per vacancy, a sharp rise from the 1:1 ratio of 2022.
Mid-sized businesses are pulling back hardest on hiring, but vacancy reductions span nearly every sector and region.
Healthcare, IT, and education still have strong hiring needs
Retail, hospitality, and construction are pulling back
Construction stands out for the fastest wage growth – firms are paying more to secure the few skilled workers available
“Only 58% of private sector employers plan to recruit in the next quarter, down from 65% in late 2024.” — CIPD Labour Market Outlook, Spring 2025 (rsmuk.com)
🌍 Compared to peers, the UK looks cautious. Job postings here are down 23% vs. pre-COVID levels, while France, Germany, and the US remain above 2019 levels.
🔒 Despite fewer openings, companies are not cutting staff en masse – redundancies remain low. Most are simply freezing or slowing recruitment and becoming choosier with hires.
📅 Looking ahead:
“The lack of momentum is the key issue now… but we anticipate an upturn later in 2025 – and not before time.” — Neil Carberry, CEO, Recruitment & Employment Confederation (onrec.com)
Smart employers are using this time to build pipelines, improve processes, and get ahead of the next upturn.