UK Recruitment Market Update – July 2025

If the last few years were a whirlwind, then summer 2025 feels more like a steady stroll. Recruitment has eased out of the post-pandemic surge and into something more grounded. The urgency may have cooled, but make no mistake, the UK job market is far from quiet. It's just getting smarter.

Hiring Hasn’t Stopped, It’s Just Evolved

Vacancy numbers have dipped, sure, but they’re still sitting above pre-Covid levels. Hiring hasn’t stopped. It’s just more intentional now. Companies are picking their moments, their hires, and their partners with care. Which means this is a real chance for recruiters to show their value.

One thing that’s shifted in our favour is candidate availability. There's more movement, more interest, more people ready to talk. In fact, there are now over two applicants per role on average. That’s a big change from the candidate-starved landscape we knew in 2022. And while the volume is helpful, what really matters is that recruiters finally have more to work with.

Money Talks, But Flexibility Gets People Through the Door!

Salaries have climbed again this year, but we’re seeing signs of them levelling out. London, as ever, leads the pack, but across the country pay is still solid. Candidates care about what they earn, of course. But in 2025, flexibility often wins the argument. Hybrid working has become the standard ask, not a bonus perk. Many candidates will walk away from a higher-paying role if it means losing control over where and when they work. If employers haven’t caught up with that reality, they’re already behind.

Tech Can Speed Things Up... But It Can’t Replace You

Technology is still doing its thing, AI is everywhere in recruitment now. It’s helping with the heavy lifting. Admin is quicker, shortlists are tighter, and hiring decisions are getting faster. But the shine is starting to wear off a little. Candidates are tired of robotic processes, impersonal outreach, and being ghosted by bots. The agencies that are cutting through the noise are the ones bringing the human side back into focus. Speed still matters. But so does sincerity.

A Market That’s Slower but Smarter

The mood across the market is a bit of a mix. Some businesses are thriving. Others are treading water. And a few are quietly winding things down. But overall, we’re not seeing panic. There’s a feeling that this is simply the new rhythm. Not quite boom, not quite bust. Just a more mature, more manageable pace.

Certain sectors are still firing. Tech and digital roles continue to pull in demand, especially anything linked to AI or green energy. Construction and healthcare remain steady, and regional markets like Leeds are quietly outperforming expectations. Sales talent is suddenly back on everyone’s radar too, just not shouted about. Companies want rainmakers again, but they’re playing it close to the chest.

Candidate Standards Are Climbing and Fast

What’s become more obvious is that candidates are raising their standards. They’re asking better questions, doing more research, and expecting a smoother experience. They want clarity, consistency, and a process that respects their time. If a job spec is vague, the salary is missing, or the updates are slow, they’re out. And they’ll remember it.

For recruiters, this is where the real work is. It’s not just about filling roles anymore. It’s about guiding clients on how to show up well. How to communicate better. How to keep people engaged. Candidate experience has become a competitive edge – and it’s showing.

Retention Is Part of the Recruitment Brief Now

While hiring has eased off in some areas, there’s growing focus on retention. Employers are investing more in training, development, and wellbeing. They’re starting to realise that keeping great people is just as strategic as hiring them. That creates space for recruiters to step into a more advisory role – not just filling seats, but helping shape long-term workforce plans.

The Opportunity Is Still There, Just Playing by New Rules

So where does that leave us? Honestly, in a strong position. The noise has died down. The hype has faded. And what’s left is a clearer picture of where recruitment is heading. It’s more considered. More consultative. More sustainable.

For managing directors leading recruitment businesses, now is the time to sharpen up. Refine your delivery. Strengthen your relationships. And focus on the basics that never go out of style. Speed, communication, and trust.

The market is still moving. The opportunity is still there. And the agencies that adapt quickly, while staying true to what really matters, will be the ones that come out stronger.