Jo Thompson Recruitment contributes to the Report on Jobs, a comprehensive guide on the UK labour market drafted by KPMG and the Recruitment & Employment Confederation (REC), compiled by IHS Markit. This monthly report is built upon survey data from recruitment consultancies and employers, providing valuable insights into the latest labour market trends.
Latest UK Report on Jobs Highlights
The latest UK Report on Jobs by the REC, KPMG, and IHS Markit reveals a modest rise in starting salaries in February, as staff availability improves and job vacancies continue to decline. While both permanent placements and temporary billings saw a drop, the rate of decline has softened.
Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, commented: “While it is still a wait-and-see approach to hiring, with February data showing companies continue to hold back on recruitment, the softer decline could be an indication that expectations of further interest rate cuts and better-than-expected recent economic data are starting to release some of the pressures on business. But several headwinds to growth remain, and we should expect a Spring Statement that is fiscally constrained due to growing spending pressures and global uncertainty.”
Neil Carberry, REC Chief Executive, added: “After a long winter, there are some hints of a turn in the labour market as we head into Spring. This is led by the private sector—despite recent tax rises—and that shouldn’t be missed. Enabling companies to grow is at the heart of our prosperity—the Chancellor must use the Spring Statement to build their confidence in growth. At the moment, though, things are still slow as companies hold their breath in the face of significant cost rises from April with changes to National Insurance and the National Living Wage.”
Executive Summary
The Report on Jobs provides a detailed, data-driven overview of the UK labour market. The main findings for February are:
- Softer deterioration in recruitment activity – The decline in permanent staff appointments continued but at a slower rate compared to the start of the year. Temporary billings also saw a softer downturn.
- Starting salary inflation weakens to a four-year low – Pay growth for new hires slowed, reflecting weaker demand for staff and an increase in candidate availability.
- Availability of workers increases at a quicker pace – Redundancies and fewer job opportunities contributed to an increase in candidate supply.
- Demand for staff continues to fall – Job vacancies declined for the sixteenth month running, with permanent vacancies declining slightly more than temporary roles.
Regional Insights: South of England
The job market in the South of England reflected broader national trends, with a continued but easing decline in hiring activity.
Steve Hickman, Reading Office Senior Partner at KPMG UK, remarked: “February saw all the hallmarks of a challenging job market continue across the South of England, with declines in both permanent placements and temporary billings. Taken alongside rising payroll costs and broader macro-economic conditions, employers remain understandably cautious. As increased redundancies lead to a greater availability of candidates for a decreasing number of job vacancies, businesses in the South hold the hiring power.”
Special Feature: Recruitment Trends for 2025
Navigating the recruitment crossroads requires adaptability and foresight. Economic uncertainty and shifting employer confidence are reshaping how businesses approach talent acquisition.
Neil Carberry, REC Chief Executive, emphasised: “One of the biggest challenges in today’s recruitment landscape is the disconnect between economic confidence and actual hiring activity. While employer confidence in the economy remains negative, hiring confidence showed notable improvement. This suggests that businesses remain cautious but are looking for the right signals to increase hiring.”
Looking Ahead
As businesses navigate economic uncertainty, it is essential to take a proactive approach to workforce planning. While hiring has slowed, there are still opportunities to secure top talent amid increased candidate availability. Companies that act strategically—investing in skills development, leveraging recruitment partners for market insights, and staying informed on policy changes—will be better positioned to attract and retain the right people. Adapting to market conditions with a long-term view will allow businesses to remain resilient and competitive in 2025.
At Jo Thompson Recruitment, we communicate seamlessly with hiring managers, fuel collaboration by sharing information and insights. Hiring managers are time-poor, so providing pre-qualified candidates with data-driven insights and creating the resilient, agile and diverse workforce you need to succeed is a major win.
We can help you refine your data-driven recruitment strategy and tailor your approach to each target audience. Help you make informed talent decisions around diversity and hidden talent pools. To talk about how Jo Thompson Recruitment can help you with your resourcing needs, please email us at info@jtrltd.com or give us a call at 01635 918955 for more details.