United Kingdom market insights
Takeaways from people2people's 2025 Report
United Kingdom market breakdown
Key trends and insights
The UK employment market in 2025 is best described as measured and evolving rather than volatile. Following several years of economic strain and shifting workforce expectations, employers are adopting a cautious yet strategic approach to hiring. Permanent placements have softened, reflecting a degree of restraint amid continued uncertainty, while temporary and contract roles — once buoyant — have steadied after earlier growth. However, this slower pace is not necessarily negative; it marks a period of recalibration. Candidate availability has increased, giving employers access to a wider pool of talent, though competition for high-calibre professionals remains intense. As flexible work, remote options, and strong benefits packages remain top priorities for job seekers, organisations are refining their offerings to maintain a competitive edge.
Looking more broadly, the 2025 UK market signals resilience rather than retreat. Despite hiring headwinds, business confidence remains solid, with most employers focused on stabilising operations and preparing for future growth. There’s also a clear shift toward strategic workforce planning — particularly in response to rising costs and upcoming policy changes such as increases to national insurance and minimum wage. Many organisations are leveraging this transitional phase to reassess skills needs, strengthen retention strategies, and invest in long-term capability. The tone is pragmatic but forward-looking: employers and candidates alike are navigating the new normal with a focus on sustainability, adaptability, and purposeful growth rather than short-term reaction.
2025 United Kingdom Labour Market
4.7%
Unemployment Rate
78.9%
National Participation Rate
3.8%
National Inflation Rate
-14%
Annual National Job Ad Change
51%
Job Seeker Confidence Index
52%
Hiring Confidence Index
United Kingdom job seeker sentiment
How engaged are people in today's job market?
Across the United Kingdom in 2025, job seekers are navigating the market with a blend of caution and confidence. After several years of economic headwinds, many are seeking greater stability and purposeful work rather than constant movement between roles. Flexibility continues to be a core expectation, with hybrid and remote options now standard, but candidates are also placing higher value on culture, leadership, and opportunities for progression.
There’s a growing sense that workers want to build careers, not just hold jobs — favouring employers who offer transparency, inclusivity, and long-term growth. The result is a more discerning and balanced employment market, where UK job seekers are weighing their options carefully and prioritising workplaces that align with their personal and professional values.
71%
Active job seekers
23%
Passive job seekers
3%
Hesitant job seekers
3%
Inactive job seekers
Employment trends shaping United Kingdom labour market in 2025
What key factors are driving talent retention in 2025?
Talent retention remains a key priority in today’s competitive job market. As workforce dynamics evolve, understanding what matters most to employees is essential. Focusing on factors such as career growth, management support, and work-life balance helps employers strengthen engagement and build lasting loyalty.
Why are you losing your staff in 2025?
Employee retention and resignation remain key challenges in today’s evolving workforce. Understanding why people leave and how to keep them engaged is essential for long-term success. As priorities shift toward career growth, culture, and leadership, businesses must adapt their strategies to retain talent. What’s driving resignations in 2025, and how can organisations better support and sustain their people?
What's the impact of forcing a return to the office?
As return-to-office mandates rise, businesses are increasingly concerned about their impact on morale, productivity, and retention. With flexibility now an expectation, finding the right balance between in-person collaboration and remote autonomy is vital. The challenge lies in making office returns work for both people and performance.
2025 Employment & Salary Report
Stay ahead of your market across Australia
Take a closer look at what’s driving hiring in your industry, from shifting employer priorities to the roles most in demand. This comprehensive report reveals the key trends shaping recruitment and workforce strategy this year, providing your business with a competitive edge in today’s uncertain labour market.
- Benchmark your company's attraction and retention strategies
- Find out what job seekers are looking for in 2025
- Identify emerging and current hiring and salary trends
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