Job Vacancies Drop to 1.2 Million: What This Means for the UK Market in 2025

Hannah Scanlan • November 6, 2024

Job Vacancies Drop to 1.2 Million
What This Means for the UK Market in 2025

In the latest employment updates, the job market has experienced significant shifts, marked by a noticeable decrease in job volumes. Recent data highlights that job vacancies have dropped to 1.2 million, reflecting an overall decline in hiring activities. This trend has raised alarm across various industries, as organisations grapple with the implications of economic uncertainty and shifting workforce dynamics.

The current climate has introduced considerable challenges for both employers and job seekers. The decrease in hiring volumes underscores a broader economic slowdown, impacting sectors that were once thriving. Businesses have become more cautious with their recruitment efforts, opting to streamline processes and prioritise essential roles. This conservative approach is driven by economic fluctuations and ongoing global disruptions that continue to reshape the employment landscape.

Despite these setbacks, there is still hope for a brighter future. Analysts and experts remain cautiously optimistic about the potential recovery of hiring volumes. As the global economy stabilises and businesses adapt to new norms, there is an expectation that job opportunities will gradually increase. One of the key drivers of this anticipated rebound is the integration of advanced recruitment technologies. These tools are transforming traditional hiring methods, making recruitment more efficient and skills-focused. Moreover, the growing emphasis on skills-based hiring reflects a shift towards more innovative and adaptable recruitment strategies that are better suited to the modern job market.

“What we’re witnessing isn’t just a temporary fluctuation but a transformation in how companies approach recruitment.”

During a recent UK Market Update, people2people Recruitment Manager, Hannah Scanlan, shared her expert analysis of the current market conditions. She provided an in-depth overview of the trends and how they are impacting recruitment. “We’ve seen a significant impact on job volumes over the past few months, and it’s crucial to understand the underlying factors driving these changes,” Hannah explained. Her insights highlight the complexity of the situation and the need for recruiters to remain agile.

Hannah elaborated on the emerging trends that are reshaping the recruitment landscape. “What we’re witnessing isn’t just a temporary fluctuation but a transformation in how companies approach recruitment,” she remarked. This transformation is driven by economic pressures that have forced organisations to reconsider their hiring strategies. Instead of focusing solely on headcount, companies are now prioritising quality over quantity, seeking candidates who possess the right skills to drive their businesses forward. This shift towards skills-based hiring is revolutionising the way recruitment agencies and employers connect with potential talent.

The conversation also delved into the impact of technology on recruitment practices. Hannah discussed the role of advanced recruitment technologies, emphasising their importance in today’s market. “We’re leveraging these tools to not only streamline our processes but also to better match candidates with roles that suit their unique skill sets,” she explained. Technology is helping to bridge the gap between employers and job seekers, making recruitment more efficient and targeted. The use of data analytics, AI-driven platforms, and digital assessment tools has become a game-changer in identifying the best talent available.

Additionally, Hannah highlighted the proactive measures people2people is taking to stay ahead of the curve. “Our approach is to be proactive, integrating new technologies and focusing on client needs to remain ahead of the curve,” she stated. This strategy underscores the company’s commitment to innovation and adaptability. By embracing change and investing in the latest tools, people2people continues to deliver exceptional recruitment solutions even in a challenging market environment. Hannah’s emphasis on being forward-thinking and client-centric sets a strong example for the industry as a whole.

The discussion also touched on the broader implications of these trends for job seekers. As companies become more selective, candidates must adapt to the evolving expectations of employers. Skills and experience are more important than ever, and job seekers need to be prepared to showcase their unique value propositions. This means focusing on upskilling and staying current with industry trends to remain competitive in the job market. Hannah’s insights provide a roadmap for navigating these changes and highlight the importance of resilience and adaptability.

To help both employers and job seekers thrive in this changing environment, here are some key takeaways and strategies:

Embrace Technological Innovation: Companies should invest in advanced recruitment technologies that streamline hiring and improve efficiency. Tools such as AI-driven platforms and digital assessments can help identify top talent quickly, ensuring a better match between candidates and job roles.
Focus on Skills-Based Hiring: With the shift towards skills-based hiring, organisations should prioritise candidates’ skills and potential rather than traditional markers like academic qualifications. This approach fosters a more diverse and capable workforce, ready to tackle modern challenges.
Stay Agile and Adaptable: The job market is evolving rapidly, and organisations must be prepared to adjust their strategies to stay competitive. This includes being open to remote and flexible work arrangements, as well as reassessing recruitment needs based on current market conditions.
Upskill and Stay Informed: For job seekers, continuous learning and development are crucial. Staying informed about industry trends and acquiring new skills can greatly enhance employability. Consider online courses, certifications, and networking opportunities to stay ahead of the competition.
Be Proactive in Your Job Search: With companies becoming more selective, job seekers should take a proactive approach. Tailor your applications to highlight relevant skills and experience, and be prepared to demonstrate how you can add value to a prospective employer.

Find the job you love | Find the right talent
Get in touch with people2people
Australia | United Kingdom

In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.

< Older Post Newer Post >

Find the job you love I Find the right talent
Get in touch with people2people
Australia I United Kingdom

The Rise of Temp and Contract Hiring: A Win-Win in the UK Market

By Maddy Laing • May 19, 2025

As businesses continue to navigate economic uncertainty, temporary and contract hiring has emerged as a flexible and strategic solution in the United Kingdom. With companies needing to adapt quickly to shifting market conditions, this hiring model is proving increasingly relevant. Temporary roles are no longer just short-term fixes; they are playing a significant role in long-term talent strategies. According to Maddy Laing, Senior Recruitment Consultant at people2people, this hiring shift is being driven by caution around long-term commitments. "When businesses aren't sure about what the next few months look like, committing to a permanent role does sometimes feel like too much. That's when a temporary contract hire comes in." "Temps can be brought in really quickly, often within a day or even a couple of hours" In today’s landscape, agility is everything. Temp staff help businesses respond rapidly to seasonal demands, cover long-term absences like maternity leave, or support project-based work. Financially, this approach often proves cost-effective—companies only pay for the hours worked, avoiding many of the additional expenses tied to permanent roles. Host Liz Jones, UK Managing Director at people2people, explores both sides of the temp hiring equation. On the business side, it’s about flexibility, fast onboarding, and lower risk. For job seekers, it’s about opportunities to gain skills, expand networks, and even transition to permanent employment. Laing points out that despite the hesitation some candidates feel about temporary roles, the experience gained can be a major career booster. "You get the chance to build new skills, work in a different environment, work for a different team or company and learn new systems as well," she says. "That kind of experience can really make a difference in the long term and make you more marketable for permanent roles." Some temporary roles also offer higher pay due to urgent needs or niche skill requirements. And in many cases, exceptional temporary employees are offered permanent positions when companies want to retain their talent. For recruitment agencies, strong performers are often placed repeatedly across valued client accounts. Flexibility is another key advantage. For those between permanent jobs or seeking work-life balance, temporary roles offer the freedom to work for a few months and then take a break. And with longer placements, many temp workers receive the same benefits as permanent staff, including the possibility of remote work. As Laing summarises, "Versatile, efficient, and often comes with a lot of big opportunities. That's probably the most impressive thing we always see with temp and contract work." In today’s dynamic market, overlooking temporary and contract roles might mean missing out on valuable career and business opportunities. Whether you’re an employer looking to stay agile or a job seeker navigating a transitional period, this hiring model offers real value and potential.

Temporary Hiring as Strategy: Why UK Businesses Must Rethink Flexibility in 2025

By Liz Jones • May 19, 2025

In today's rapidly evolving UK job market, businesses are re-evaluating how they approach hiring. With economic shifts, digital transformation, and workplace flexibility becoming more prevalent, temporary hiring is emerging not as a short-term fix, but as a strategic tool for long-term growth. On a recent PTP Live episode, host Hannah Slee and guest Maddy Laing, Senior Recruitment Consultant at people2people, discussed this very shift. The conversation focused on dismantling outdated myths around temp roles and spotlighting how companies can use them as a powerful workforce strategy. "Temp hires today can be a really big strategic fix" Temporary roles have traditionally been seen as a last resort—a bandaid solution to cover staff absences or urgent vacancies. But as Laing explains, the game has changed. "Because of massive changes around economic uncertainty, new regulations, even AI and digital transformations, the way temporary hires are looked at is really evolving." These roles now often bring in skilled consultants, project leads, and industry experts who opt for temp work due to the flexibility and variety it offers. Businesses are also using temp hiring as a way to test new positions or headcounts without the risk of permanent commitment. In effect, temp staff provide not only capacity but also fresh perspectives and innovation. Slee adds, "Temp talent isn't just a safety net. It's really a competitive advantage." Companies can onboard quickly, scale up efficiently during peak periods, and stay agile in times of change—all without the overheads associated with permanent roles. Moreover, the quality of temp candidates has seen a significant uplift. As Laing notes, "The quality of temp work and the quality of temp hires and jobs has also really changed for the positive." Far from being a fallback, temporary work can drive significant value and often leads to longer-term opportunities. Another rising trend is using temp roles as a pipeline for permanent hires. When a temporary employee proves to be a great fit, many businesses are keen to retain them permanently, turning a short-term solution into a long-term asset. Businesses that continue to view temp hires as a last resort may find themselves missing out on talent, efficiency, and adaptability. The smartest organisations are already integrating flexible hiring into their broader strategy, recognising that these professionals can fill immediate needs while fuelling innovation and growth. As Laing summarises, "If you're still thinking of temp hires as a last resort, then I definitely think you're really missing out on a lot of potential." In a job market where 72% of professionals are considering a job change, it's clear that flexibility and strategic hiring are more important than ever. Whether you're navigating transformation, covering a gap, or planning for growth, now is the time to rethink the role of temporary staff in your business.

Job Hunting Abroad: Practical Steps for a Smooth Move to the UK

By Maddy Laing • May 19, 2025

As international travel opens up and more professionals seek overseas opportunities, finding work abroad remains a compelling yet complex challenge. For those eyeing a move to the United Kingdom, preparation is the critical factor that separates a smooth transition from a stressful one. While visa options are fairly accessible for Australians relocating to the UK, securing employment is often the real hurdle. According to Maddy Laing, Senior Recruitment Consultant at people2people, the initial excitement of moving abroad is quickly followed by the practical challenge of job hunting. "Doing your research before you arrive makes all the difference," she says, emphasising that preparedness is key to navigating the UK job market effectively. "Make sure you have your status set to the correct country" One of the first and most impactful steps a job seeker can take is updating their LinkedIn profile. Laing stresses that setting your job search status to the correct location—like London rather than your current city—helps recruiters find you. It provides visibility and signals intent. "LinkedIn is a huge advantage and a really big network people need to look into, especially when you're moving to a new job and looking for new work." Work eligibility is another cornerstone of successful job applications. As Laing points out, being able to clearly explain your visa status is essential. Recruiters and employers need immediate clarity on whether a candidate can be legally hired, and uncertainty here can lead to delays or lost opportunities. Connecting with local recruiters before arriving is another strategic move. Beyond job matching, recruiters offer invaluable market insights—like which roles are in demand, realistic salary expectations, and industry trends. "Even if you're not ready to apply just yet, those early conversations can set you up with better expectations and a clearer understanding of the landscape," says Laing. Preparation extends to researching local salaries, which may not match what candidates earn in their home country. Factors like cost of living, supply and demand, and economic shifts all play a role in salary levels. Laing notes, "Just because you earn a certain salary in a previous country, doesn't mean that you're going to earn that same salary where you're going." A personal and professional network is also invaluable. Reaching out to former colleagues, friends, or even LinkedIn connections can lead to opportunities that haven't hit the open market yet. Laing encourages prospective movers to engage with their network early: "Put a post out there, start to chat to people, connect on their posts, and opportunities may come through that way." Host Hannah Slee, Recruitment Manager at people2people, adds that the UK job market is showing cautious optimism. With employment up and vacancy rates stabilising, there's reason for hopeful candidates to be encouraged. While traditional sectors like retail continue to face challenges, areas such as tech, professional services, and immersive technologies are experiencing growth. That said, some challenges remain. Unemployment has slightly increased, and economic inactivity remains high, driven largely by longer-term health issues. These trends continue to shape talent availability and influence hiring strategies across sectors. If you're planning a move to the UK, the key takeaways are clear: start early, make use of digital tools like LinkedIn, be transparent about your work eligibility, and tap into local recruiter expertise. Aligning expectations with local realities and activating your network could make all the difference in your overseas job search. Laing concludes with a reassuring message: "If you're planning to move to the UK and to London, definitely we can help you with your job search or any questions that you may have." For professionals ready to embrace the UK job market, a proactive and informed approach will pave the way to success.

Is Your Business Ready for the Financial Year? Strategic Hiring Insights

By Liz Jones • May 19, 2025

As the United Kingdom edges closer to a new financial year, businesses across the region are taking stock of their hiring strategies and workforce plans. A recurring theme is the importance of readiness, especially in a market where timing and preparation can make or break recruitment outcomes. According to recent insights, many companies remain uncertain about headcount budgets and future role requirements. This hesitation often stems from a lack of clarity in strategic planning, making it increasingly difficult to align recruitment with business goals. In today’s hiring landscape, the ability to plan ahead and forecast talent needs is no longer a luxury—it's essential. Recruitment experts are observing a notable shift. No longer are businesses simply approaching agencies with job specifications. Instead, they seek comprehensive market insights, including salary benchmarks and team structuring advice. This proactive engagement indicates that organisations are beginning to understand that recruitment strategy is deeply entwined with overall business success. "Strategic planning isn't just a financial thing" Maddy Laing, Senior Recruitment Consultant at people2people, highlights a common issue: "A lot of businesses do need to be prepared and think that they should be prepared. But once you actually dig into the details, especially around recruitment, there's usually some gaps that do need attention." Laing notes that businesses frequently fall into a reactive hiring mode, only deciding on needs once the new quarter has begun. This often results in top candidates being snapped up by more prepared competitors. "When you do recruit within a reactive process, chances are that the top candidate's already gone," she says. The shift towards strategic recruitment is echoed by Liz Jones, UK Managing Director at people2people, who notes, "Businesses aren't just coming to us with job specs. They're asking for market insights, salary trends, even advice on team structure. That early planning really makes such a difference." To combat recruitment pitfalls and build stronger hiring frameworks, both experts advocate for a structured approach. The first step is to review past recruitment patterns: which roles were hardest to fill, where growth occurred, and where gaps still exist. This data provides a solid foundation for future hiring plans. Next, it’s crucial to align hiring goals with business objectives. Whether expanding into a new region or launching a new product, understanding the type of team needed to support these initiatives is key. Laing advises, "Make sure that they are matching and in alignment... what kind of team will you need to support this and how is that going to be different to what you may have hired last year?" Retention also plays a critical role. Planning is not solely about acquiring new talent but also about keeping existing staff engaged and in the right roles. As Jones points out, "Maybe you don't need to hire many if you're investing in developing your current team." Final advice for businesses looking to stay ahead in the financial year? Collaboration. Laing stresses, "Don't plan in isolation... talk to your internal recruitment team, talk to hiring managers... and even some of your current employees." The more perspectives gathered, the stronger and more effective the hiring strategy. In a competitive market like the UK, strategic recruitment planning isn’t just beneficial—it’s essential. With the financial year fast approaching, now is the time for businesses to shift gears, adopt a proactive stance, and ensure that their hiring strategy supports long-term growth.

Employee Monitoring: Is Your Oversight Strategy Hurting Retention?

By Liz Jones • April 16, 2025

Over half of UK employees would consider quitting if they discovered their employer was monitoring them, according to recent research. With 85% of businesses admitting to tracking screen activity and website usage, employee trust is at risk. In this blog, people2people’s UK Managing Director Liz Jones explores the impact of surveillance on workplace culture, stress, and retention. Learn how to strike the right balance between oversight and autonomy, with practical strategies to build a trust-first culture that supports both performance and wellbeing. Is your business protecting productivity—or pushing your top talent away? Read more to find out.

Latest Media Features

List of Services

Get in touch

Find out more by contacting one of our specialisat recruitment consultants across Australia, New Zealand, and the United Kingdom.