• Swindon & Wiltshire Economy
• Friday February 21 2025
• Author Name: Peter Davison

UK hiring could be on the rise as confidence lifts, says report

The number of job postings in the UK increased by seven per cent month-on-month in January, according to a new report published today (Friday) by the Recruitment and Employment Confederation.

The REC – along with KPMG – is also responsible for the report published last week, suggesting that vacancies were declining at their fastest rate since the financial crisis.

However, in its latest report, REC said the number of active job postings in January 2025 was 1,516,535 – an increase of 7.2 per cent on the number of job postings in December 2024.

It marks the first time that job postings have risen since June 2024.

The authors of the Labour Market Tracker added that the number of new job postings was also up by a whopping 34.4 per cent against a ‘sluggish’ December 2024.

A bright spot in a week of difficult news about the UK economy

“The January 2025 figures show employers coming back to the job market as the new year begins, despite economic challenges, and indicates cautious optimism in some sectors,” said the report.

“It is a bright spot in a week of difficult news about the UK economy.”

REC deputy chief executive Kate Shoesmith said: “While there are tough conversations going on in boardrooms across the country, today’s report suggests it is too soon for gloom about the UK economy’s prospects overall for 2025.

“The increase in job postings is a clear sign that employers will hire when they need to.

“A 34.4 per cent increase in new jobs signals a solid rebound in demand, showing that businesses remain resilient, despite both domestic and international headwinds.

“We will look closely in the coming months to see if we are looking at a broader turn.”

New jobs by sector

By sector, job hunters in the fields of stonemasonry (+48 per cent), gardening (+45 per cent) and travel and holidays (+43 per cent) are in the best place to find a new job, while – post-Christmas – the demand for delivery drivers (-73 per cent) and postal workers (-47 per cent) shrank.

Jobs in IT were up 1,3 per cent, with particular demand for IT Quality and Testing Professionals (15.6 per cent). Jobs in construction were up 100,000 – a 13 per cent increase. And jobs in the retail sector generally were up, although posts for sales and retail assistants were down 8.4 per cent.

The local view

Locally, recruitment specialist CMD Recruitment said the implementation of employers’ NI increases in April could be a pivotal moment in the jobs market.

“We have started to see some businesses place people at risk, which could mean a genuine downturn for them or business owners more aware of the looming NI increase,” said operations manager Dan Barfoot.

“The next few months certainly will be challenging in any sector.”