With the first quarter of 2025 now behind us, several key trends have begun to shape the recruitment landscape as we move into Q2.
In our latest recruitment market outlook, we unpack the standout insights from Q1, provide a snapshot of the current hiring environment, and share expert commentary from our Senior Consultant, Victoria Butcher, on the emerging trends and expectations for Q2 and beyond.
Read on to find out the latest recruitment market insights.
Key takeaways from Q1:
Recruitment activity continued to decline
Steepest rise in candidate availability since late 2020
Pay continued to rise, but only modestly
Recruitment activity continued to decline through the second quarter of 2025, as businesses remained cautious due to economic uncertainty and tighter budgets. According to the latest reports, permanent hires dropped at the fastest pace in nearly two years, while temporary placements also saw a sharper decline.
Demand for staff weakened further, especially for permanent roles, contributing to a notable rise in candidate availability - the steepest since late 2020. This surge was largely driven by redundancies and fewer job openings.
Although pay rates for new hires and temporary staff edged up, the growth was modest and remained below historical averages. The increase in temporary wages was partly supported by recent rises in the national minimum and living wages.
Q2 Recruitment Market Outlook
Victoria Butcher, Senior Consultant
“Looking ahead to Q2, we anticipate a continuation of current trends. Cautious hiring is likely to persist as many businesses are still navigating economic uncertainty and haven’t fully rebounded just yet.
But it’s not all doom and gloom! Many of my clients and industry contacts are still actively hiring, particularly for candidates with strong soft skills. Employers are putting together attractive packages to secure the right talent, even in a more competitive market. With fewer roles available, working with a recruiter can be a real advantage as we have access to some fantastic opportunities to meet your needs.
One area we expect to see increased activity in is the technology and AI space. AI is transforming the way we work, and with that transformation comes both disruption and opportunity. While some roles may evolve or even disappear, entirely new ones are emerging, roles that didn’t exist just a few years ago. Think back to the pre-digital era: the job landscape looked completely different. The key is to stay adaptable and open to new possibilities.
As AI becomes more integrated into the workplace, soft skills are becoming more valuable than ever. These are the human qualities that AI can’t replicate, things like communication, emotional intelligence, adaptability, and customer service. If you’re job hunting, make sure these strengths are front and centre on your CV and in your applications. They could be what sets you apart.”
Another area where we anticipate growth in Q2 is temporary employment. With the summer season in full swing, employers are likely to seek short-term, flexible workers to meet fluctuating demands. The summer holidays also bring a surge in availability, particularly from students who are not in education during this period, making it an ideal time for temporary hiring.
While I don’t have a crystal ball (though I wish I did!), we can’t predict Q2 with absolute certainty. However, we’ve identified several key trends that we expect to either continue or gain momentum in the coming months."
Navigating today’s recruitment landscape can be challenging, but we’re here to make it easier!
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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 April, May, and June. The reports are compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.
