Job market insights 2025
What employers need to know
posted 13 May 25
The UK job market has taken a noticeable shift in 2025. According to the Office for National Statistics, job vacancies dropped by 26,000 between January and March. That marks 33 months in a row where vacancy numbers have dipped. But this doesn’t mean hiring is easy now. In fact, competition for the right talent has become even tougher.
The landscape has changed. Employers are having to rethink how they hire, what candidates expect, and how they can stand out. That’s not bad news. It’s just different. And different can be a good thing when you’re willing to adapt.
At Search, we work with clients every day across the UK, from Glasgow to Crawley. Here’s what we’re seeing in real time, and how your business can respond with confidence.
Where the job market stands now
Let’s get one thing straight: fewer vacancies doesn’t mean less hiring. It just means more caution and more competition for the right candidates. Businesses are receiving more applications, but they’re still struggling to find people with the right skills or experience.
In sectors like healthcare, social care, logistics and customer service, it’s particularly difficult. Roles in these areas often need very specific capabilities, or demand working patterns that don’t appeal to everyone. The candidates are out there, but the hiring approach needs to change to reach them.
Instead of waiting for perfect CVs to land, employers are getting more proactive. They’re looking at how to train from within, how to widen job criteria without lowering standards, and how to make roles more appealing to a broader group of people.
What’s shaping hiring in 2025
Gen Z are driving new expectations
The oldest Gen Z candidates are now in their late twenties. They’ve been in the workforce a few years and they’re starting to shape culture, not just join it. They care about growth, flexibility, mental health, and purpose.
If your business can’t show that it offers progression or support for wellbeing, Gen Z candidates will keep looking. This isn’t entitlement. It’s just a shift in priorities. Employers who listen to this generation and adapt their approach are the ones building more engaged, future-ready teams.
Hybrid work isn’t going away
Return-to-office mandates made headlines in late 2024. But many businesses who rushed people back in are now reversing course. Staff want flexibility. Hybrid models are still the preferred option, especially when expectations are clear.
It’s not about letting people work from home whenever they want. It’s about being transparent and building trust. If employees know what the policy is, why it exists, and how it supports both them and the business, they’re more likely to get on board.
AI is useful, but human connection matters more
AI tools are now a normal part of recruitment. They can help screen CVs, set up interviews and keep admin in check. But they can’t replace the human side of hiring. Candidates want to feel seen and respected. They want feedback. And they want to know someone real is making the final decision.
If you’re using AI in your process, just be upfront about it. Let candidates know how and when it’s used, and keep people involved in every decision that matters.
The recruitment strategy that works now
Invest in employer brand
Your employer brand is everything people think and feel about working with you. And these days, candidates do their research. They’re reading your reviews, checking your social media, and scrolling your website before they even consider applying.
Make sure your brand reflects who you really are. Show your values in action. Highlight your team culture and development opportunities. Be consistent across every channel. It builds trust and helps attract the right people.
Show a clear path for progression
It’s one of the most common reasons people leave jobs: they can’t see a future there. Candidates want to know where they can go and how you’ll help them grow. If you don’t show that early on, they may not stick around.
Make career progression part of your job ads, your interviews, and your onboarding. It’s not about promoting everyone overnight. It’s about showing that you’ve got a plan for people to build a meaningful career with you.
Be transparent about flexibility
Flexibility means different things to different people. For some it’s remote work. For others it’s hours that fit around school runs or other commitments. Whatever your version is, be honest about it.
Flexible roles appeal to a wider talent pool. They’re more inclusive and they support retention. You don’t have to offer everything, but be clear on what you can provide.
What businesses are doing differently
In response to a tougher job market, some employers are stepping up in practical ways. They’re adjusting their hiring process, improving onboarding and creating better reasons for people to stay.
We’ve seen employers succeed when they:
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Involve line managers early in the hiring process
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Streamline interviews to two or three well-structured stages
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Offer realistic role previews to avoid surprises on day one
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Use onboarding to build confidence and connection, not just tick boxes
Retention isn’t just about keeping people. It’s about helping them thrive so they choose to stay.
Final thoughts
The UK job market in 2025 isn’t easy. But it’s also full of opportunity for businesses willing to adapt. The employers getting it right aren’t doing anything flashy. They’re just doing the basics well:
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Listening to what candidates want
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Being honest about what they offer
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Building teams with potential, not just experience
At Search, we help businesses do just that. We match you with candidates who fit your values and goals, and we support you with strategies that actually work. From entry-level hires to long-term workforce planning, we’ve got the insight and experience to help.
Talk to our team today and let’s build a hiring plan that works for your business.
