Q4 Recruitment Market Outlook
With 2025 underway and the final quarter upon us, three key trends are standing out in the recruitment market following the close of Q3.
In our latest recruitment market outlook, we highlight the top insights from Q3, offer an overview of the current market environment, and share expert perspectives from our Senior Consultant, Victoria Butcher and Consultant, Maeve Speed, on the arising trends and anticipations for Q4 and beyond.
Read on to find out the latest recruitment market insights.
Key takeaways from Q3:
Demand for staff continued to decline throughout Q3
Candidate availability climbed to six month high
Pay continued to rise for top quality candidates
Recruitment market overview of Q3
Demand for temporary and permanent staff continued to fall at the end of 2024, which saw the quickest decline in permanent placements since the summer.
The overall availability of candidates increased successively throughout quarter three, with a notable sharp influx of temporary workers in October, the sharpest recorded since December 2020.
The availability of candidates added to the continued decline and limitation of permanent salary growth, with demand for staff staying low. Similarly, temporary pay rates saw a modest increase during the three months, though remaining below historical trends. However, in December, there was an increase in the rate of starting salary inflation as companies were willing to raise pay for high quality candidates.
Q4 recruitment market outlook
Victoria Butcher, Senior Recruitment Consultant
“It’s a challenging time for most! We are seeing some sectors thrive and others struggle, letting staff go under mass redundancy and restructuring. We face uncertainty, which could soon become a ‘triple threat’ scenario with the New Working Rights bill, National Insurance changes, and economic shift all leading to less confidence in the market.
On the brighter side, we are still seeing companies recruiting, although cautiously. Interview processes and decisions are taking longer, and with more candidates available, this means a tough fight for the position for some candidates, which was not the case 18 months ago.
Although things may not be all sunshine and roses, I think vacancies will start to rise to normal levels. People are slightly nervous and rightfully so – but I believe businesses will weather the storm.”
Maeve Speed, Recruitment Consultant
“The social care recruitment sector is facing some big challenges, as it often does. With the rising National Living Wage and employer National Insurance contributions, there’s growing concern about staff reductions and the impact on care quality.
This uncertainty has made skilled professionals more cautious about changing roles, creating a shortage of specialists for expanding services. At the same time, changes to international recruitment have led to fewer overseas hires, limiting the talent pool even further.
Looking ahead to 2025, we are likely to see more redundancies, which could lead experienced professionals to explore new roles within the sector or transition into different areas of social care. While the road ahead isn’t without its challenges, there’s hope that with careful planning and adaptation, organisations can navigate these changes.”
Navigating today’s recruitment landscape can be challenging, but we’re here to make it easier!
Whether you're looking to switch roles and explore new opportunities or you're uncertain about your career path, our expert recruitment consultants are here to help you find a role that’s right for you. We specialise in recruiting for both temporary and permanent positions across the public and private sectors. Register now!
Alternatively, discover how we can support your temporary and permanent staffing needs. Our specialist recruitment teams work with both public and private sector clients to deliver comprehensive, end-to-end recruitment solutions, ensuring we find exceptional candidates who fit seamlessly from day one. Find out more here: Private Sector Recruitment
Information sourced from the KPMG and REC UK Report on Jobs survey, compiled by S&P Global, for October, November, and December. The reports are compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.
.png)
.png)
