After a few years of hiring highs, the UK job market is now facing one of its sharpest slowdowns in recent memory.
By mid-2025, vacancy numbers have dropped for a staggering 35 months in a row, settling at just 736,000 openings between March and May (ONS).
Recruitment activity has dipped for eight straight months, too (Ryecroft Glenton), and the overall picture is one of hesitation, caution, and uncertainty across the board.
What's Happening in the Market?
Permanent hiring has taken the biggest hit, with companies pausing on long-term commitments. Temporary roles are faring a little better, but even that side of the market hasn't returned to pre-pandemic levels.
Big names like Hays have reported a 13% fall in UK recruitment fees, while unemployment has ticked up to 4.6%, and roughly 250,000 jobs have been lost in recent months (CJPI).
It's the most sustained hiring downturn we've seen since the early 2000s – driven by:
🔹 Economic uncertainty
🔹 Rising costs
🔹 General reluctance to expand too quickly
Who’s Feeling the Pressure?
🔹 Candidates are facing fewer vacancies and stiffer competition. With redundancies rising, there are more people on the market all chasing the same roles.
🔹 Recruitment agencies are seeing lower placement volumes and tighter fee margins as clients delay decisions.
🔹 Employers now have more choice and less pressure to push salaries upwards. But prolonged hiring freezes could limit growth if left unchecked.
It's a classic "buyer's market" – but the longer the slowdown lasts, the more challenging the recovery could become.
Why This Matters Now
What we're seeing in 2025 isn't just the usual summer slowdown or seasonal lull. It's a structural contraction – the most significant in over two decades (CJPI) – and it's forecast to stretch into 2026.
Businesses are navigating rising wage bills, national insurance, and minimum wage adjustments (Hiring Lab).
Many are choosing to "labour hoard" – holding onto staff but avoiding fresh hires. This slows innovation and increases pressure on internal resources.
If hiring stalls for too long, talent pipelines dry up, productivity drops, and stretched teams feel the squeeze.
It's Not All Gloom: Finding the Positives in a Slower Market
🔹 Stronger hiring decisions: With less urgency, employers can focus on long-term fit.
🔹 More talent available: Candidates who were once off-limits are now open to new roles.
🔹 Time to reflect: Businesses can streamline processes and polish their employer brand.
🔹 Upskilling surge: Professionals are investing in development, raising talent quality.
🔹 Smarter partnerships: Recruiters and clients are building more strategic, collaborative relationships.
Use this quiet period to sharpen your strategy and get ahead of the curve.
How to Respond: A Practical Guide for Both Sides
📌 For Employers:
🔹 Prioritise growth-critical roles.
🔹 Use contractors to keep projects moving.
🔹 Refresh your employer brand presence.
🔹 Keep building your future talent pipeline.
📌 For Candidates:
🔹 Be flexible – temp and freelance roles are valuable experience.
🔹 Upskill – get certified and stay competitive.
🔹 Stay visible – update your profiles and speak to recruiters.
🔹 Be patient – and ready when opportunity knocks.
Final Thoughts
Yes, the hiring market is quieter than it's been in years. But with the right mindset and a bit of forward planning, this slower phase doesn't have to be wasted time.
Whether you're an employer looking to futureproof your workforce or a candidate navigating a more competitive landscape, now is the moment to think long-term, act smartly, and stay ready for what's next.