As we hit the halfway point of 2025, it’s clear the UK jobs market is going through a quieter, more cautious phase. Both the KPMG/REC Jobs Outlook (June 2025) and Indeed Hiring Lab’s Mid-Year Report tell a similar story: things have slowed, but we’re not seeing any signs of a sharp downturn.
📉 Hiring Activity Slows, but There’s No Panic
Recruitment consultancies are still reporting a drop in both permanent and temporary placements, making this the 17th month in a row. Employers remain hesitant, especially across HR, Marketing, Project Management, and Tech.
According to Indeed, job postings are down 5% since the start of the year and 21% below where they were before the pandemic, with the biggest drops seen in office-based and professional roles.
That said, we’re not seeing a wave of redundancies. Unemployment has ticked up slightly, but the number of people out of work compared to vacancies (2.2) is still better than the historical average (2.8). In short, hiring has eased off, but most companies are choosing to hold on to the people they’ve got. That’s likely down to ongoing skills shortages and the high cost of replacing staff.
🎓 Entry-Level Talent Feeling the Strain
Both reports point to a tough year for graduates and early-career candidates. Job opportunities at this level are the lowest they’ve been since at least 2018. The rise of GenAI is also adding uncertainty, with some employers unsure how junior roles will evolve and holding back on graduate schemes or training-heavy positions as a result.
🏡 Hybrid’s Not Going Anywhere and Flexibility Still Counts
Despite all the talk of return-to-office, around 15% of job adverts still mention remote or hybrid working. And for many candidates, especially in HR, flexibility remains a dealbreaker.
We’re also seeing fewer zero-hours contracts: down from 2.2% in January to 1.8% by May. That’s likely linked to upcoming legal changes, but also reflects a wider move towards more stable contracts and clearer working patterns.
📌 What Should Employers Be Thinking About?
This is a good moment to pause and take stock. Hiring is slower, but retaining the right people is just as important, especially in specialist areas like HR.
- Look at internal talent and consider where upskilling or short-term support might help fill the gaps.
- Graduates are available and often bring fresh thinking and adaptability, even if they need support to get started.
- Hybrid is still a draw, and offering choice remains one of the simplest ways to attract (and keep) good people.
This isn’t a crash, just a cooler spell. And for HR teams, it’s a chance to refocus on what matters: clarity, consistency, flexibility, and long-term planning.
📚 Sources:
- KPMG and REC, UK Report on Jobs – June 2025, published 14th July 2025
- Indeed Hiring Lab – UK Mid-Year Labour Market Update 2025
At Resourcing4HR, we speak every day with HR professionals adjusting to the current market — from individuals looking for greater job security or flexible working, to clients rethinking their team structures.
Whether you’re hiring now or planning ahead, we can support you with:
✔️ Specialist HR recruitment advice
✔️ Up-to-date insight into what candidates want
✔️ Flexible options — permanent, contract or interim
📩 Contact us at annabel@resourcing4hr.co.uk or karen@resourcing4hr.co.uk to find out how we can help.