The UK Employment Landscape in 2025: What You Need to Know
- Employing Now
- Apr 14
- 3 min read
As we move deeper into 2025, the UK job market is undergoing noticeable changes. Economic pressure, social trends, and upcoming policy shifts are creating both challenges and opportunities for jobseekers, employers, and young people alike. Here’s a breakdown of what’s happening in employment across the UK right now.
1. Job Market Slowdown, But Rising Candidate Availability
Recent data shows that the number of jobseekers has increased at its fastest pace since the pandemic in 2020. This is largely due to a drop in new job postings and an increase in redundancies. Permanent staff placements have been falling for over two years, while employers remain cautious with hiring plans.
Wages, which saw record growth during inflation peaks, have now stabilized. In March 2025, there was a slight increase in pay offers, but not enough to suggest strong wage pressure is returning to the market.
2. Nearly a Million Young People Are Not in Work or Education
Youth employment has become a growing concern. As of early 2025, nearly one million young people aged 16–24 are classed as NEET (Not in Education, Employment, or Training)—the highest level in more than a decade.
Many factors contribute to this trend, including the long-term impact of the pandemic, reduced investment in training programs, and limited access to career guidance. Experts warn this could lead to long-term consequences for both the economy and young workers unless targeted support is introduced.
3. Employment Rights Reform: A New Bill Is on the Way
The UK government is proposing major changes to employment law via the new Employment Rights Bill. This draft legislation aims to improve job security and work-life balance, especially for people in precarious roles.
Key proposed changes include:
Legal protection against unfair dismissal from the first day of employment
A ban on exploitative zero-hours contracts
The right to flexible working from day one
Stronger rights for union representation
However, some business groups argue that the new rules may have unintended side effects, such as reducing holiday job opportunities for students and young workers.
4. The Role of Passion and Flexibility in Job Choices
Surveys show a shift in what younger workers want from their careers. A recent study found that 84% of UK Gen Z workers would consider moving abroad for their ideal job. Salary is no longer the top priority; instead, purpose and personal growth are key motivators. Employers who align roles with values and offer real flexibility are likely to attract top talent.
5. Skills Over Degrees: A New Hiring Mindset
Many employers are shifting their focus away from formal qualifications in favor of real-world skills—especially in fast-moving sectors like tech, green energy, and artificial intelligence. This approach not only widens the talent pool but also supports social mobility by valuing potential over pedigree.
Final Thoughts
The UK job market in 2025 is a complex mix of opportunity and uncertainty. Whether you’re a jobseeker trying to navigate a competitive landscape or an employer aiming to stay ahead of workforce trends, staying informed is key.
At Employing Now, we’ll continue to share updates and advice to help you make confident, informed decisions in a fast-changing world of work.
