Posted on 01/07/2025 
by Matthew Thomas
Welcome to your July 2025 edition of The Rhino Report, where we bring you the latest UK job market update and sector highlights.
Summer is well underway, making it the perfect time to set new goals, explore fresh opportunities, and keep up to date with employment trends.
Whether you’re exploring a new role or looking to understand the current hiring landscape, this month’s update offers valuable insights for candidates and employers alike.
The employment landscape across the UK continues to show stability. Between February and April 2025, employment for people aged 16 to 64 rose to 75.1%, as reported by the Office for National Statistics (ONS). This indicates more individuals are in work compared to the same period last year.
Economic inactivity has decreased to 21.3%, showing that more people are participating in the workforce.
“The jobs market is proving to be remarkably resilient in the face of wider economic uncertainty,” said Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce.
Despite stable employment rates, the number of payrolled employees is declining. In May, figures dropped by 109,000 and have reduced by 274,000 over the past year.
This signals more cautious hiring behaviour, with some employers opting to pause or slow recruitment plans (ONS).
From March to May 2025, total job vacancies in the UK fell by 63,000, bringing the total to 736,000. This marks the 35th straight decline in open roles, with most sectors showing reduced hiring activity.
“Vacancies continued to fall across most industry sectors for the 35th consecutive quarter,” said Seemanti Ghosh, Principal Economist at the Institute for Employment Studies (Personnel Today).
Earnings are still on the rise, even with fewer vacancies. Average regular pay increased by 5.2% over the year to April. Adjusted for inflation, this represents a real-terms boost of 1.4%.
Public sector earnings grew slightly faster at 5.6%, while private sector pay rose by 5.1%. Flexibility, development, and career progression remain top priorities for many job seekers.
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Despite declines in vacancies and payroll, the UK’s total job count is rising. Workforce Jobs data shows 37.1 million positions as of March 2025, an increase of 187,000 since December and over 300,000 over the year. This includes multiple-job holders, giving a wider picture of activity.
The UK unemployment rate now stands at 4.6%, with 1.735 million people claiming unemployment-related benefits as of May. For employers, this signals more candidates in the market. For job seekers, it underlines the importance of standing out during applications (ONS).
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As the job market shifts, being informed is essential. We’ll continue to provide monthly updates, roles, and recruitment insights throughout the summer.
Thanks for reading The Rhino Report. See you next month!