UK vs. NZ Employment Trends: Predictions for 2025

Liz Jones • December 4, 2024

UK vs. NZ Employment Trends: Predictions for 2025

The employment landscape is undergoing significant shifts globally, with regions like the UK and New Zealand experiencing both challenges and opportunities. Economic uncertainty, shifting workforce expectations, and the continued evolution of workplace norms have shaped the outlook for 2025. Employers and job seekers alike are navigating this landscape with cautious optimism, leveraging trends and adapting to the ongoing changes.

In New Zealand, the job market has seen significant contraction. Job vacancies in Wellington, for example, dropped by a striking 49% in the year to September 2023. This reflects the challenging conditions in the region as businesses cautiously approach hiring decisions. The UK, meanwhile, has shown some positive indicators, with a recent uptick in business and consumer confidence. However, this improvement remains fragile, underscoring the continued unpredictability of the market.

While some sectors, such as healthcare and technology, show resilience, others face headwinds due to inflation, supply chain challenges, and shifting global priorities. The evolving nature of workplace flexibility and hybrid work models further complicates the landscape, creating both opportunities and challenges for businesses and job seekers alike. As we prepare for 2025, understanding these dynamics and adapting accordingly will be crucial for success.

“The market isn’t booming, but with the right strategies, opportunities can be found.”

During a recent UK Market Update, hosted by Managing Director Liz Jones, was joined by NZ Principal Consultant Mark Smith, and shared valuable insights into the employment challenges and opportunities in both the UK and New Zealand. They examined how global and regional factors are influencing hiring trends, workforce expectations, and market stability.

Mark highlighted the unique challenges facing the New Zealand market. “In Wellington alone, job postings dropped by 49% year-on-year,” he shared. Despite this, there are signs of recovery, though the timeline remains uncertain. He noted that many hiring managers expect improvement by mid-2025, adding, “We’re seeing green shoots, but a full recovery is unlikely before March or April next year.”

One prominent theme in the discussion was workplace flexibility. Liz contrasted approaches in the UK and New Zealand, noting, “In the UK, the right to request flexibility is now enshrined in legislation, whereas New Zealand is taking a stricter stance, pushing public servants back into offices.” This divergence has implications for workforce satisfaction and talent retention. Hybrid work remains a contentious topic, with Mark pointing out that, “Around 60% of the workforce doesn’t have the opportunity for remote work, which raises equity concerns.”

The conversation also explored the importance of adaptability in attracting and retaining talent. Liz emphasised the need for employers to evolve their strategies, stating, “The ability to attract and retain talent today goes beyond just salary. It’s about articulating your purpose and building a compelling employer value proposition.” This sentiment highlights the increasing complexity of workforce dynamics, where organisations must balance compensation with cultural and operational flexibility.

Mark also shed light on the challenges posed by immigration processes in New Zealand. “Visa sponsorships are currently difficult to secure, with significant delays in processing,” he explained. These barriers add another layer of complexity for businesses trying to fill critical roles, as well as for job seekers looking to expand their opportunities internationally. He shared examples of candidates facing long wait times before starting roles, underlining the need for patience and strategic planning in such cases.

Liz also touched on the evolving employer-employee relationship in a post-pandemic world. She highlighted that, “Employers need to focus on articulating clear values and creating workplaces where employees feel both challenged and supported.” In such an environment, hybrid and flexible work arrangements are not just perks but critical elements of the employment value proposition.

The speakers agreed on the importance of resilience and adaptability for job seekers. As Mark succinctly put it, “The market isn’t booming, but with the right strategies, opportunities can be found. It’s about positioning yourself well and staying proactive.”

Practical Advice for Job Seekers in 2025

For those navigating the employment market in 2025, preparation and adaptability will be key. Below are some practical tips to improve your prospects in an uncertain landscape:

Focus on Skill Development
Stay competitive by upskilling in areas that align with current market demands. Short courses or certifications in digital tools, project management, or other industry-specific skills can make your profile more appealing to employers.
Embrace Flexibility
Be open to hybrid or remote roles if your circumstances allow. While flexibility may not be feasible for all, it remains a priority for many organisations, especially in sectors where it’s practical.
Target Growth Sectors
Research industries with steady demand, such as healthcare, technology, or renewable energy. These fields are likely to offer better job security and opportunities for advancement.
Customise Your Approach
Tailor your CV and cover letter for each role, ensuring you highlight relevant skills and experience. Employers appreciate candidates who demonstrate a clear understanding of their needs.
Leverage Networking
Attend industry events, connect with professionals on platforms like LinkedIn, and engage in discussions to expand your network. Personal connections can often lead to job opportunities.
Prepare for a Competitive Market
Understand that the job market may remain challenging through the first half of 2025. Approach your job search with resilience and a willingness to explore different roles or industries.

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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.

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Why British workers struggle to switch off despite leading in workplace trust

By Liz Jones • September 8, 2025

A workplace culture writer specialising in employee wellbeing, flexible working trends, and HR innovation. Helping organisations create healthier, more productive work environments through trusted insights and data-driven content.

UK Labour Market Holds Strong Despite Slower Pay Growth

By Liz Jones • August 27, 2025

The latest data shows that the UK labour market continues to perform steadily in 2025, with employment levels holding firm and job vacancies remaining historically high. While pay growth has slowed slightly, overall workforce activity remains strong, supported by high participation and resilient hiring demand. Liz Jones, Recruitment Director at people2people UK, says that this steady picture aligns closely with trends identified in the firm’s 2025 UK Market Report. “We are still seeing a healthy labour market,” she explains. “Employment is growing, and job openings remain strong, especially in sectors such as healthcare, logistics and professional services.” Employment Rate Rises, Unemployment Falls According to the July 2025 bulletin, the UK employment rate rose to 76.4 percent, the highest in over a year. The unemployment rate dropped to 3.7 percent, a level not seen since early 2020. This marks continued improvement in labour force participation following a volatile period during the pandemic recovery. Jones notes that this trend is being felt across multiple industries. "Businesses are rebuilding workforces and candidates are returning to the labour market," she says. "It is encouraging to see stronger engagement from both employers and jobseekers." Pay Growth Slows but Remains Positive One notable shift in the July update is a softening of pay growth. Annual wage increases for the period stood at 5.2 percent, down from 6.1 percent earlier in the year. This reflects a more balanced economic climate as inflation eases and employers stabilise budgets. “While pay growth is slowing, it is still above historical averages,” Jones comments. “Employers are adjusting to cost pressures, but most remain committed to offering competitive salaries to retain talent.” Vacancies Stay High, Reflecting Continued Demand Despite slower wage growth, the number of job vacancies remains elevated. Sectors such as care, education, and IT continue to post consistent hiring demand, with temporary and contract roles seeing a modest rise in 2025. “Our market report shows that employers are being more selective, but they are still hiring,” says Jones. “The competition for skilled talent is keeping demand steady, especially for roles that require specialist expertise or qualifications.” Implications for Employers With a stable employment base and slower but sustained pay growth, Jones suggests that now is a critical time for companies to refine their recruitment strategies. She recommends: Reviewing salary benchmarking to stay competitive in priority roles Streamlining recruitment processes to reduce vacancy durations Investing in retention through training and internal mobility Enhancing employer branding to attract passive candidates “The market is not slowing down,” she says. “It is settling. Employers who respond with clarity and flexibility will continue to secure great talent.” Summary The July 2025 labour market update confirms a period of stability for the UK workforce. While pay increases are moderating, employment levels remain high and hiring activity continues across core sectors. For recruitment leaders, this is a time to invest in strategy, not to pull back. With the right planning, employers can navigate this market with confidence.

Return-to-Office Pressure Drives Resentment

By Liz Jones • August 20, 2025

Pressure to Return to the Office Is Driving Resentment Among UK Workers As flexible working continues to define the future of employment, new findings suggest the UK may be facing a growing disconnect between employer expectations and employee preferences. According to people2people UK’s 2025 Market Report, more than half of workers feel increasing pressure to spend additional time in the office, a shift that is impacting engagement and retention across multiple sectors. Liz Jones, Recruitment Director at people2people UK, says that rigid workplace policies are now a leading contributor to candidate reluctance and employee churn. "Our data shows that 54 percent of UK employees feel pushed to return to the office more than they want to," she explains. "This pressure is not just inconvenient. It is reshaping how people view their current roles and future opportunities." Where the Pressure Comes From The 2025 Market Report found that much of the drive to return to the office stems from top leadership, with executive teams leading the call for more on-site presence. This push is not always aligned with performance metrics or employee feedback. "This is not about output or productivity," says Jones. "It is about outdated assumptions. Leadership often equates visibility with value, but that mindset is increasingly out of step with how modern teams work best." The mismatch between executive expectations and employee needs is contributing to declining morale, particularly in office-based roles that could easily operate on a hybrid basis. Flexibility Still Matters Despite the push to increase office attendance, flexibility remains a top priority for candidates and employees. The Market Report confirms that roles offering flexible working continue to receive more applications, fill faster, and maintain lower turnover rates. "Flexibility is not a temporary trend," Jones adds. "It is now a standard part of what professionals expect. Candidates are telling us clearly that how they work matters just as much as where or for whom." The data reveals that teams which embrace flexible models tend to report stronger engagement, better collaboration, and improved retention outcomes, especially in sectors such as tech, finance, and professional services. What Employers Should Do To stay competitive, Jones advises that employers need to reevaluate their return-to-office strategies with both data and empathy in mind. people2people UK recommends: Involving employees in setting attendance expectations Tailoring policies by role, function, and team needs Communicating the reasons for on-site requirements clearly and consistently Measuring the impact of attendance policies on productivity and engagement "One-size-fits-all approaches no longer work," Jones notes. "Companies that listen to their teams and create flexibility within structure will outperform those that rely on top-down mandates." Looking Ahead As the labour market continues to evolve, the ability to offer meaningful flexibility will be a deciding factor in who attracts and retains top talent. The 2025 UK Market Report shows a strong correlation between adaptive working policies and long-term business resilience. "Employers have a choice," Jones concludes. "They can lead with trust and flexibility, or risk losing great people to those who do."

Candidate Availability Is Rising at the Fastest Rate in Over Four Years

By Liz Jones • August 13, 2025

Candidate availability in the UK labour market has increased at the fastest rate since December 2020. Our 2025 people2people UK Market Report highlights the same trend that has been flagged, with the volume of candidates rising sharply due to redundancies and subdued hiring activity. Market Supply Meets Reduced Demand Liz Jones at people2people UK notes that the shift represents a clear imbalance. "Candidate supply is surging as job openings contract," she commented, in line with findings from our 2025 market report. "More people are actively looking but there are fewer roles available. This impacts how recruiters and HR managers plan talent attraction and engagement strategies." Salary Impact and Recruitment Strategy The increase in candidate availability has also influenced pay trends. Salary growth has remained modest due to reduced hiring budgets and greater competition for fewer active roles. "With more talent available and slower demand from employers, organisations are better positioned to be selective," Liz shared from our analysis. "This is a chance to focus on quality of hire rather than speed of hire." What This Means for Employers In a market with rising candidate supply and fewer opportunities, jobseekers become more discerning. They are assessing potential employers based on culture, flexibility, development opportunities, and brand values. Liz Jones advises that businesses should: Clearly articulate what makes them stand out to candidates Review their employer value proposition against market expectations Consider investing in candidate experience platforms and employer branding Maintain recruitment agility so they can swiftly fill roles when market conditions improve Preparing for Market Recovery Our 2025 report shows that while hiring activity remains subdued, there are early signs of resilience in sectors such as engineering, logistics and healthcare. "This market may feel cautious," Liz explains, "but there are pockets of opportunity. Organisations that maintain readiness will be first to tap into recovering sectors and talent pools."

Impacts of the Lack of Flexibility in the Workplace

By Liz Jones • August 6, 2025

Flexible working is no longer a perk. It is a priority. Our people2people 2025 Market Report confirms that a lack of flexibility is pushing a significant portion of the workforce to look elsewhere. Employers who fail to adapt are already seeing the consequences. According to our research, more than one million people in the UK left their jobs in the last 12 months due to rigid working conditions. That is nearly three percent of the workforce walking out of roles that did not meet their expectations for flexibility. This shift is not limited to remote working. It also includes flexible hours, part-time arrangements and compressed working weeks. Employees are looking for control over when and how they work. A Disconnect Between Policy and Preference While flexible work continues to rank high on the list of job seeker priorities, our data shows that more than half of employers have increased expectations for in office attendance in 2025. This rise is driven primarily by leadership mandates rather than operational need. "There is a growing disconnect between leadership expectations and employee preferences," I said while reviewing our report findings. "The result is avoidable turnover and a widening talent gap in key sectors." This trend is most visible in professional services, finance and tech roles where hybrid work is both possible and preferred. Employers insisting on a return to pre 2020 working patterns are facing greater difficulty attracting and retaining skilled candidates. Flexibility Strengthens Recruitment Outcomes The business case for flexibility is clear. Our report found that job adverts which include flexible options receive up to 40 percent more applications and fill faster. These roles also report lower early-stage attrition, suggesting a better match between employer and candidate expectations. "Flexibility improves both the volume and quality of applicants," Liz Jones noted. "It gives companies an edge in a market where top talent has choices." Candidates now assess flexibility before they consider salary, commute or even job title. Those who have experienced hybrid or remote work environments are unlikely to go back to rigid models without significant trade offs. What Employers Can Do Now The solution is not a one-size-fits-all model. Instead, companies should aim to provide structure around flexibility that meets both business and employee needs. Based on our research, I recommend: Making flexibility a default part of job design and recruitment messaging Offering a mix of remote, hybrid and flexible hour options depending on role Providing training for managers to lead distributed teams effectively Tracking turnover data linked to flexible work policies to spot early warning signs The expectations of the workforce have changed. Flexibility is now a deciding factor for candidates and a retention tool for current employees. Firms that ignore these expectations will continue to lose talent. Those that embrace structured flexibility will gain a clear advantage in attraction, engagement and long-term workforce planning.

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