Blog Img

Q1 Recruitment Market Outlook 2025

Back to Blogs

​As April marks the start of Q1 and a new financial year, three standout trends are shaping the recruitment landscape following the close of Q4.

In our latest Recruitment Market Outlook, we unpack key insights from Q4, provide a snapshot of the current hiring environment, and share expert perspectives from our Senior Consultants Jess Mubokie and Victoria Butcher, on emerging trends and what to expect in Q1 and beyond.

Read on to find out the latest recruitment market insights.

Key takeaways from Q4:

  • Hiring activity declined

  • Candidate availability surged

  • Pay growth weakened

Overview of Q4:

The UK recruitment market remained cautious in Q4, reflecting the ongoing economic uncertainty and rising employment costs. Permanent placements and temporary billings continued to fall, though the pace of decline eased slightly. Demand for staff weakened further, with vacancies dropping at one of the steepest rates since 2020.

In contrast, candidate availability rose sharply, driven by widespread redundancies and reduced hiring activity. This increase in labour supply, coupled with low demand, led to historically weak pay growth, with starting salaries and temp wages increasing at their slowest rates in years.

Overall, the labour market showed signs of continued deterioration, with reduced employer confidence and tighter budgets contributing to cautious hiring behaviour.

Q1 Recruitment Market Outlook:

Jessica Mubokie, Senior Recruitment Consultant

"It is an increasingly competitive market and an unusual period for recruitment. With new workplace trends and AI, the way talent is attracted and rewarded is shifting and we are seeing exciting new opportunities on the rise!

With new legislation affecting budgets, we expect to see strain on certain sectors. Similarly, there is uncertainty about the rippling effects on smaller businesses. We are likely to see some redundancies, that could progress into interesting collaborations utilising transferable skills.

With 83% of companies reported to prioritising skills over traditional qualifications, we will see a skills-based approach expanding a more diverse, fresh candidate pool and building a more dynamic and inclusive workforce. Navigating can be challenging and unnerving, although I would suggest that employers approach with a strategy and evaluate how you can improve the candidate recruitment experience, to attract talent and retain excellent employees."

Figure source: LinkedIn’s 2023 Global Talent Trends report.

Victoria Butcher, Senior Recruitment Consultant

"At the moment, we’re seeing a continuation of an employer led market, which marks a huge shift in the industry over the last 18 months in comparison to the few years prior. For candidates, this means jobs become harder to obtain and follows what we’ve seen in previous quarters of decreased wages and less-attractive offers.

For employers, the talent pool for office-based only roles is shrinking with the increased introduction of hybrid and flexible working policies. A recent survey revealed that 70% of people would not leave their current role for a role that was based in the office 5 days a week, making hybrid working a highly desirable benefit to include in job offerings.

I believe the recruitment market will remain relatively stable, with minor peaks and dips throughout the quarter with businesses that are offering attractive learning and development opportunities and hybrid working policies attracting the mass of qualified candidates."

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 January, February, and March. The reports are compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.