The UK job market is entering 2025 with a mix of challenges and opportunities. Many sources, including Jobsora.com, indicate a decrease in the number of job ads, but an increase in job seekers activity. Authoritative data also suggests that remote and hybrid work will remain in job ads in 2025. Of course, all of these facts are influenced by macroeconomics indicators, such as GDP forecasts in the UK and government plans in the labour sector. So let’s analyze the labour data and predict what happens with the job market in 2025.
Economic outlook
The UK economy performed slightly better than expected in 2024. However, recent months have seen a slowdown. The first half of 2024 showed a strong rebound from the mild technical recession experienced in late 2023, but economic momentum has slowed in recent months, raising specific concerns about the outlook for the labour market, BBC UK reports.
Policy changes, including higher employer National Insurance contributions, increased minimum wages, and a new workers’ rights package, are expected to impact hiring, particularly in sectors like retail and hospitality. Knowledge-based jobs also face slower hiring amid a “white-collar recession” and subdued business confidence.
Economic forecasts for 2025 suggest GDP growth of approximately 1.5% to 2%, placing the UK in a balanced position among advanced economies.
Decline in job postings
Job postings in the UK saw a significant 24% decline in 2024, with almost all categories seeing reductions. On our platform Jobsora.com, we also saw a significant decrease, while the interest of job seekers increased. The global drop was mentioned among other peer countries, including Canada, and the US.
Indeed’s Job Postings Index reports that out of the 48 occupational categories, only the legal sector experienced growth (+12%). Meanwhile, fields like veterinary services, electrical engineering, and security & public safety saw the sharpest declines.
In 2025, specific sectors could benefit from the Labour government’s policy priorities. Construction and engineering may experience growth driven by efforts to expand housebuilding and green energy projects, while increased hiring in education and healthcare is expected to support certain public sector roles.
The labour market is strong despite the decline in job postings
The number of active job postings in November 2024 totalled 663,814, marking a 6% drop from October. However, driving and logistics bucked the trend: a 2% increase in job postings in November 2024, driven by demand for delivery drivers and couriers.
The Recruitment & Employment Confederation (REC) highlighted that the labour market is strong, Staffing Industry Analysts reports. REC’s Chief Executive Neil Carberry noted, “There are still more than 1.5 million jobs out there and plenty of opportunities for job seekers.” He highlighted that despite concerns over policy-driven challenges, such as rising employment costs, businesses remain optimistic about their outlook for 2025.
Jobsora.com supports the statement that some sectors remain strong, such as logistics and public services. Also, in 2024 salary transparency has reached a record high, with 72% of job postings now including pay information.
Remote and hybrid work remains despite the return-to-office
Remote and hybrid work remain strong trends in the UK job market, with 14.6% of job postings offering such flexibility, according to The Guardian. While tech roles, which often feature remote options, have seen weaker posting trends, professional sectors like accountancy, finance, legal, and marketing continue to sustain high levels of location flexibility.
Jobseekers maintain strong interest in remote and hybrid roles, with searches up ninefold compared to pre-pandemic levels. For employers, offering flexibility remains a key competitive advantage, particularly for those competing with larger brands for top talent.
While remote work isn’t feasible for all jobs, employers in in-person roles are exploring alternatives like four-day workweeks. These postings are most common in less remote-friendly sectors such as veterinary (16.2%), childcare (4.0%), and education (2.5%). Though niche, the four-day workweek may grow in popularity, supported by new pilot programs in 2025, The Guardian reports.
Labour and government’s bold goals for 2025
UK Prime Minister Sir Keir Starmer said the government inherited a country that “isn’t working” and promised to address the main causes of unemployment and inactivity. Since Covid-19, the number of people not working or looking for work has stayed above 9 million.
Starmer’s government plans to raise the employment rate to 80% by helping more people find jobs and giving young people the skills they need. Current figures show the employment rate is 74.8%, with 21.8% of people inactive and 4.3% unemployed, leaving 1.49 million out of work, according to the BBC.
A path forward
The UK job market in 2025 seems to face several challenges, including economic uncertainties and slowing job postings, but resilience should remain as a defining feature. For the job seekers, finding a job is still tough, however in some industries like healthcare or engineering their chances are high. For the employers, 2025 will be a year of several policy changes. And yes, the employer’s workforce strategies should be strict and effective, especially in the era of AI. For the job search platforms, helping unite employers and the best talent on the market remains top-1 priority for 2025.
