There’s no doubt about it – the UK’s job market has been feeling the squeeze lately. From rising living costs to global economic shifts, businesses and jobseekers alike are navigating some pretty choppy waters.

At Pertemps, we’ve been keeping a close eye on how all this uncertainty is affecting hiring trends. Here are five big shifts we’ve noticed:

Job vacancies are on the decline

There are fewer jobs available right now. In April 2025, the UK had around 761,000 open vacancies – that’s down by 42,000 from the previous quarter and 131,000 fewer than the same time last year. This drop shows that many employers are taking a cautious approach to hiring as the economy remains unsettled.

Unemployment has risen slightly

In the three months to March 2025, the unemployment rate was 4,5%, slightly higher than the previous quarters 4.4%. It’s not a dramatic increase, but it does highlight that more people are actively looking for work and finding it harder to get hired.

Youth unemployment is a concern

Young people are feeling the impact more than others. For those aged 16 to 24, unemployment rose to 14.6%, compared to 13.7% in the previous quarter. This shows the challenges younger workers are facing when trying to enter the job market.

Economic inactivity remains high

A significant number of people remain economically inactive – meaning, they are not currently looking for work. The inactivity rate was 21.4% in early 2025, a slight decrease form before but still above pre-pandemic levels. This indicated a continued gap in workforce participation.

Wages are holding steady

The good news is that wages are still growing. Average regular earnings increased by 5.9% year-on-year in early 2025. This means pay is still rising faster than inflation, which is a positive sign for those in work.

For more details, take a look at the full Pertemps/CBI Labour Market Updates. A new one is published each month.

Please reach out to your local branch to see how we can help you.