The official stats below reflect data taken from April and early May. That said, Annabel and I are definitely seeing more positive signs in the HR market. Yes, itโs still challenging, but we do feel things are starting to turn. It will be interesting to see if the upcoming labour market reports reflect this momentum โ and weโll be sure to share them with you all as soon as they are published.
In the meantime, hereโs a snapshot of the current market:
๐น Permanent Hiring Activity
According to the RECโs Report on Jobs for April, permanent staff appointments declined at the sharpest rate since the start of 2024. Clients are reportedly hesitant to commit to long-term hires, largely due to continued economic uncertainty. Interestingly, temporary billings have remained more stable, with some businesses using contract or interim cover to remain agile.
๐น Candidate Supply on the Rise
We’re seeing a rise in candidate availability โ particularly from individuals looking for more stability or better pay. That said, skills shortages persist in specialist areas, with some sectors struggling to fill key roles despite more CVs in circulation.
๐น Wage Trends
Starting salaries for permanent roles are still increasing, but at a more subdued pace than last year. Temporary pay is showing a bit more resilience โ suggesting ongoing competition for flexible talent.
๐น Indeed’s Labour Market View
Indeed echoes many of these themes. Their May update notes that job postings have softened overall, but some areas like healthcare, social care, and logistics remain busy. Wage growth is gradually slowing too, which could ease some of the pressure on businesses managing tight salary budgets.
๐ Takeaway for People Leaders:
Itโs still a competitive market โ but with more candidates starting to explore options. While growth hiring may be on pause for many, backfills, restructures, and project-based needs are still keeping things moving. Agile thinking is key.
Sources:
๐ REC Report on Jobs โ April 2025: https://www.rec.uk.com/our-view/news/press-releases/report-jobs-downturn-hiring-activity-eases-april
๐ Indeed Hiring Lab UK Labour Market Update โ May 2025: https://www.hiringlab.org/uk/blog/2025/05/21/may-2025-uk-labour-market-update-gradual-slowing-continues/