Early 2025 has seen a steady increase in the UK labour market. Hiring activity is resilient across all key sectors. The outlook is uncertain because of the cost increases that were introduced in April.
According to the latest Labour Market Tracker by the Recruitment and Employment Confederation and the labour market analytics company Lightcast, the number of active job ads in March 2025 was 1.6 million, which is the same as the previous quarter.
These changes may increase employment costs, but the positive GDP growth data for February has given rise to some optimism. Although these changes increase employment costs there is some optimism in the positive GDP growth data of February which showed expansion across all major economic sectors.
Neil Carberry, Chief executive of REC, acknowledged that employers are under pressure when he commented on the findings.
There’s no doubt that it is difficult to hire people, as the cost to take workers abroad increases, but businesses remain resilient and continue to create new opportunities. “With a steady 1.6m job ads out there, employers see glimmers,” he said. “The labour markets are stabilising, and February’s growth statistics offered cautious optimism. The UK appears to be well-positioned to weather some external shocks resulting from changing global trade policies.”
The blue collar sector and agriculture show significant gains
From February to March of 2025, the number of job openings in agriculture increased by 4.2 percent. Farmers’ roles saw the largest increase of 39.8 percent. This makes them the fastest growing occupation in the country. The growth was also seen by Biological Scientists (7.9%), Agricultural and Fishery Trades Not Otherwise Classified (16.7%), and Agricultural and fishing trades not otherwise classified (16.7%). Farm Workers saw a decline of 1.7 percent and Forestry Workers experienced a 12.7 percent.
The hiring of blue collar workers also increased, with a 3.9% increase in job listings between February and march 2025. Roles like Production Managers and Director in Manufacturing rose by 11.4%, Skilled Metal, Electrical and Electronic Trades supervisors by 8.8% and Production, Factory and Assemble Supervisors increased by 7.7%. Assemblers and Packers of Electrical and Electronic Products, Forklift Truck Drivers, and Assemblers and Packers, Bottlers, Canners and Fillers all saw declines of 6.8 percent, 4.5%, and 3.5% respectively.
Financial services hiring up as administrative roles decline
In March 2025, job ads for finance and accounting roles increased by 1.6 percent compared to previous months. Finance and Investment Advisors and Advisers, as well as Purchasing Managers and Director postings both increased by 9.2 percent. Increases were also seen for Insurance Underwriters (7.2%), Financial Accounts Managers (5.4%) and Business and Financial Project Management Professionals (3.7%). Financial Administrative Occupations, not otherwise classified, fell by 12.9%.
Demand for secondary and primary educators also increased. In March 2025, the REC/Lightcast Tracker recorded 25,896 advertisements for Secondary Education Teaching Professionals. This is an increase of 5.8 percent compared to February. Primary Education Teaching Professionals also saw an increase of 9.6 percent, with 17,653 new job listings.
Variations in regional hiring patterns
The UK has a wide range of hiring patterns. Central Bedfordshire had the largest increase in job listings at 16.3 per cent. Argyll & Bute continued to perform well for a second month in a row, with an increase of 23.5 per cent in February and 22.7% in March. East Dunbartonshire saw a 24 per cent increase in job advertisements. Nine of the ten counties with the highest growth rates are located in Scotland or Wales.
The sharpest drops in job postings were in East Derbyshire (-11.7%), Fermanagh and Omagh (10.8%) and Lisburn and Castlereagh (14.1%).
The roles that will see the largest increases nationally in March 2025 include Farmers (39.8%), Delivery Drivers and Couriers (39.5%) and Rail Construction and Maintenance Operatives (29.5%). The biggest falls in the occupations of Animal Care Services not otherwise classified (-13.9%), window cleaners (-16.7%), and probation officers (-35.9%) were observed.
Carberry said that government support is crucial, even though business resilience will remain. He said that “competitiveness is important to businesses, and it’s the ability of private sector to drive growth which will solve government fiscal headaches.” He warned that employer investment would continue to stagnate without concrete policy directions.
