UK Recruitment Trends for the Second Half of 2025

What We’re Seeing at 2020 Recruitment

Over the last year, we’ve seen labour shortages across multiple sectors in the UK, sparking conversations around economic slowdown and whether this could be an early sign of another recession.

The wider recruitment market has undoubtedly slowed, with many businesses cautious about hiring due to economic uncertainty, rising wage expectations and budget constraints. However, there is still resilience, particularly in sectors like engineering, construction, healthcare and energy where demand for skilled professionals remains steady.

Here’s how the job market is shaping up as we move into the second half of 2025 and what businesses need to know to stay competitive.

Key Growth Sectors for Late 2025

Several sectors in the UK are forecast to grow despite wider economic challenges:

• Engineering & Manufacturing – Continued investment in green energy, infrastructure, and automation is creating demand for technical and engineering talent.
• Technology & Cybersecurity – Businesses are doubling down on digital transformation and data protection, driving demand for software developers, analysts and IT specialists.
• Healthcare & Life Sciences – Ongoing skills shortages in nursing, mental health and biotech mean this sector continues to recruit heavily.
• Construction – Large government housing and infrastructure projects are fuelling roles across trades, project management and civil engineering.
• Supply Chain & Logistics – Ecommerce growth and AI-led warehouse management mean demand for skilled logistics professionals remains high.

Remote & Hybrid Working Is Still a Major Draw

Since the pandemic, flexible working has become a dealbreaker for many candidates.

Employers offering remote or hybrid options continue to see better response rates and stronger candidate retention although many, post-pandemic now offer flexibility out of necessity rather than preference as they navigate the balance between productivity and candidate expectations. Even in traditionally on-site sectors like engineering or manufacturing, flexible scheduling and hybrid admin roles are helping attract a wider talent pool.

Counteroffers Are Slowing the Hiring Process

We’re seeing more applicants pull out of job offers after accepting counteroffers from their current employers.

This trend is causing frustration and delaying hiring timelines.

Tip for employers: Move quickly and offer competitive packages early in the process to reduce dropouts.

Video Interviews Are Now Standard Practice

Platforms like Zoom and Microsoft Teams are now a normal part of both early-stage and final interviews even for local hires.

At 2020 Recruitment, we use video interviews and meet candidates in person where we can because nothing beats that personal connection.

It’s Still a Candidate Led Market

Although vacancy numbers have dipped slightly from the post-COVID peak, it’s still a candidate-driven market for many skilled roles.

Candidates are prioritising:

• Salary and benefits
• Work-life balance
• Purpose and values alignment
• Career development opportunities

Inflation and cost-of-living concerns mean employers are having to adjust salaries and offer stronger benefit packages to remain attractive.Read more on recruitment strategies here

Employer Branding & Social Media Matter More Than Ever

Today’s candidates do their research. If your company isn’t active on social media, you may be invisible to top talent.

A strong social media presence is important, encouraging employer reviews on sites and showcasing culture will make your business stand out.

Focus on Transferable Skills

With skill shortages persisting, many businesses are now hiring based on potential and attitude not just experience. Skills can be taught however attitude cannot.

We’re helping clients look beyond industry-specific CVs and instead focus on transferable skills like:

• Adaptability
• Communication
• Problem-solving
• Willingness to learn

Let’s Talk Recruitment

Whether you’re a small business looking for a one-off hire or a larger organisation planning a recruitment drive, we’re here to help.

Call: 01592 805600
Email: [email protected]
Visit: www.2020-recruitment.com
Vacancies: jobs.2020-recruitment.com