Review of the UK Jobs Market – July 2025

Welcome to our Review of the UK Jobs Market for July. 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:

• • Starting salary inflation slips to lowest in partly four-and-a-half-years
  • Permanent placements and temp billings continue to decline
  • Rapid turn in candidate supply amid reports of redundancies

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Staff Appointments

As has been the case since July 2024, temp billings decreased in July 2025 Anecdotal evidence frequently attributed the all to lower demand for temp staff, often due to cost-cutting and reduced operational requirements and clients. Furthermore the rate of contraction was the most pronounced in six months and sharp.

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Vacancies

Vacancies fall again in July

July saw a sharp and accelerated decline in demand for workers, Moreover, the rate at which vacancies fell was steeper than the average seen since November 2023. Permanent vacancies fell at the fastest pace in five months, whist temporary roles decreased at the sharpest rate since April.

Figures from the Office for National Statistics (ONS) indicated that vacancies declined by 56,000 over the second quarter of 2025. As a result, the overall number of job opportunities stood at 727,000; the lowest figure since the three months to April 2021. The number of total vacancies was also 8.6% (68,000) below the pre-pandemic level of 795,000 seen in the three months to March 2020.

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Staff Availability

Growth in permanent staff supply remains historically sharp

There was another rapid increase in permanent candidate supply during July. Notably the rate of growth moderated only slightly from June’s four-and-a half-year high. Redundancies, and worries over current job security, were cited as the key drivers of growth. Reduced hiring activity amid a subdued economic environment was also linked to the upturn in candidate numbers.

Availability of temp workers improves at substantial pace

Temporary worker availability also rose again in July. While the rate of expansion slowed from June’s recent post-pandemic record, it reamined sharp in the contet of historical date. Company layoffs and reduced workplace activity were all attributed to the latest upturn in temp candidate supply.

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Pay Pressures

There was a further slowdown in starting salary inflation in July. Furthermore, the rate of growth was the slowest seen since the current period of inflation began in March 2021. Companies are still offering higher salaries to attract and secure desirable candidates, but this is levelling off due to budget restraints and improved candidate availability.

Source: KPMG and REC UK Report on Jobs 11th August 2025