July 2025 Jobs Market Report

Headline Findings

• Permanent placements fell sharply, recording the fastest drop in 22 months
• Temporary billings also declined, at the steepest rate since February.
• Candidate availability rose at its fastest pace since late 2020, driven by redundancies and caution over hiring.
• Vacancies continued to fall, with a greater decline in permanent roles than temp roles.
• Starting salaries and temp wages growing more slowly due to weaker demand and rising candidate supply.

 

What this means for candidates

The broader picture remains challenging, especially for those entering the job market or looking to build early-career experience.

 

Several factors are making it tougher:

1. Rising AI adoption: More companies are turning to automation to handle administrative and basic analytical tasks¹, reducing entry-level opportunities.
2. Higher employer costs: Increases in National Insurance contributions and minimum wage rates have made hiring junior staff more expensive².
3. Economic caution: With sluggish growth and uncertainty around trade and taxes, many businesses are prioritising cost control over headcount expansion.

 

So, is it all doom and gloom? Not quite.

 

Wages are still rising. Starting salaries for permanent roles have increased for the 52nd consecutive month, and temp pay has also edged up. Importantly, wage growth is now outpacing inflation, which should begin to ease cost-of-living pressures.

 

And while the market is more competitive, it’s still active. Nearly 750,000 vacancies were advertised in the UK over the 3 months³. The right role is out there - it might just take a little more persistence and flexibility to find it.

 

What this means for clients

Hiring conditions remain fluid, and caution continues to shape decision-making across much of the economy.

 

Several pressures are contributing to this:

1. Rising employment costs: Increases to National Insurance and the national minimum wage have pushed up the baseline cost of hiring.
2. Growing use of automation: Many organisations are investing in tech solutions to streamline workflows, particularly in admin-heavy or repetitive roles.
3. Economic headwinds: Uncertainty around tariffs, interest rates, and demand is leading many firms to pause or scale back on new hires.

 

Yet opportunities exist for those employers prepared to embrace the uncertainty and take a long-term view.

 

Candidate availability has risen sharply, the highest in over four years⁴, creating a more favourable market for employers who are ready to move decisively. At the same time, wage inflation is softening, offering more predictability in hiring budgets.

 

While some sectors remain cautious, others - such as construction, healthcare, and logistics⁵ - are showing resilience. For employers willing to be proactive, the current market conditions present an opportunity to secure high-quality candidates while competition is quieter.

 

¹ https://www.theguardian.com/business/2025/jun/30/uk-entry-level-jobs-chatgpt-launch-adzuna

² https://on.ft.com/40xeoF7

^{3, 4} https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/july2025

⁵ https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/workforcejobsbyindustryjobs02