A half-year reality check

Posted on 8 Jul 2025
A half-year reality check

Vacancies down 17% as the labour market weakens. That sounds grim and depressing, doesn't it? However, it's not all doom and gloom.

The first half of 2025 has been challenging in what I can only describe as a weird market. You can't predict or plan for anything! When I'm out networking, it's the first question everyone asks.

Here's what's happening in our market right now:

  • Job vacancies fell by 150,000 (16.9%) compared to last year, now 7.4% below pre-pandemic levels
  • Payrolled employees dropped by 274,000, with retail and hospitality hit hardest (down 200,000)
  • Unemployment rose to 4.6% - the highest in nearly four years
  • Many roles are on hold due to economic uncertainty - we even had an accepted offer pulled last week
  • Geopolitical uncertainty, particularly from the USA, is impacting confidence
  • Candidates with 2+ years in their roles are nervous about moving
  • Those facing redundancy have expectations misaligned with current market realities
  • Some businesses still think they can get 100% of their wishlist - YOU CAN'T - COMPROMISE IS ESSENTIAL

The good news? May picked up for us, June felt normal again, and July looks promising.

If you're recruiting, don't delay - we can help. If you're job hunting, put your head above the parapet. We'll always be honest and transparent about your prospects.

Don't let the doom and gloom get you down!