Review of the UK Jobs Market – April 2025

Review of the UK Jobs Market – April 2025

Welcome to our Review of the UK Jobs Market for April. Each month, we share market insight on the state of the UK jobs market.

You can either read our short blog, or see our infographic.

The main findings were:

    • Permanent placements decline at softest rate in seven months
    • Candidate numbers rise amid further drop in vacancies

    • Temp wage growth improves to 11-month high

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Staff Appointments

Permanent placements fall at softest pace in seven months

UK recruitment consultancies signalled a further reduction in the number of people placed into permanent jobs roles in April. Seems that employers were hesitant to commit to permanent hires due to economic uncertainty. There were also reports that increased pressure on budgets amid higher payroll costs had dampened recruitment activity.

Downturn in temp billings eases slightly

Billings received from the employment of short-term staff fell for the tenth month in a row during April. Though solid, the rate of reduction was the slowest seen in the year to date. Firms were reluctant to take on short-term workers due to uncertainty around the outlook and concerns over higher staff costs.

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Vacancies

Further steep reduction in demand for workers

April signalled a drop in overall demand for staff for the eighteenth successive month. There were quicker and similarly steep falls in demand for both permanent and temporary staff. Notably, temporary vacancies fell at the sharpest pace since June 2020.

Latest data from the Office of National Statistics (ONS) indicated there were 781,000 vacancies across the UK in the three months to March. This represented a drop of 26,000 from the preceding three-month period and the lowest recorded since the three months to May 2021. Notably, the figures was approximately 5% lower than the pre-pandemic level.

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Staff Availability

Expansion in permanent staff supply eases only slightly

Recruiters across the UK signalled a further improvement in the availability of staff for permanent position in April. Furthermore, the rate of expansion held close to March’s 51-month record. Anecdotal evidence indicated that the supply of workers had often increased due to job losses stemming from company restructuring and redundancies. Some noted that workers were seeking new roles due to concerns around job security and efforts to secure higher paying roles.

Temporary candidate numbers continue to rise sharply

April also signalled a further substantial increase in temporary staff supply. Notably the rate of growth eased only slightly from March and was among the quickest seen n the past from years. Reduced demand for workers, fewer job opportunities and redundancies were cited.

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Pay Pressures

Growth of permanent starters’ pay remains below long-run trend

Salaries awarded to newly-placed permanent workers increased for the fiftieth month in a row in April. Efforts to attract and secure high quality candidates was a key factor in pushing up salaries.

Temp pay inflation quickens to 11-month high

Average hourly rates of pay for temporary staff across the UK continued to increase at the start of the second quarter. The rate of wage inflation was the quickest recorded in nearly a year and solid.

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Source: KPMG and REC UK Report on Jobs 12th May 2025

 

Information, Intelligence, Job Outlook, Trends 14 May 2025 Written by Marketing