The UK job market in 2025 : January Assessment

The UK job market remains resilient despite economic fluctuations. While 2024 began with a strong rebound from the mild technical recession of 2023, hiring slowed in the latter half of the year. However, with GDP growth projected between 1.5% and 2% in 2025, the economy is expected to stabilize, creating a more predictable hiring environment.

Job postings declined by 24% in 2024, but job seeker activity surged, signaling a talent-rich market. According to Indeed’s Job Postings Index, only the legal sector saw growth (+12%), while industries like veterinary services, electrical engineering, and security experienced sharper declines. Yet, key sectors such as logistics (+2%) and public services remained strong, showing continued demand for essential roles.

Labour market policies will shape 2025 hiring trends. Government investment in housebuilding and green energy projects is expected to drive growth in construction and engineering, while hiring in education and healthcare will increase to support public sector needs. Additionally, salary transparency hit a record high, with 72% of job postings now including pay information, improving candidate trust and engagement.

Flexibility remains a powerful hiring tool, with 14.6% of job postings offering remote or hybrid work. While the tech sector saw weaker job postings, professional fields such as finance, legal, and marketing continue to sustain high levels of location flexibility. Searches for remote jobs have increased ninefold since pre-pandemic levels, making it a key differentiator for employers competing for top talent.

The Labour government aims to raise employment rates to 80%, emphasizing job creation and skills development. With 1.5 million vacancies still available, businesses that adapt to policy changes and evolving workforce expectations will remain competitive.

Despite challenges, 2025 presents significant opportunities. Strategic hiring, employer adaptability, and investment in high-growth industries will be essential in navigating the evolving labour market. The right approach will allow businesses to secure top talent while job seekers find more accessible pathways into stable and rewarding careers.