"Hiring in UK 2025: Navigating Cautious Optimism and Sector-Specific Demand"
Jul 10
2 min read
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As of July 2025, the UK labour market is in a transition, moving from rapid post-pandemic growth into a new normal defined by economic caution, rising costs, and shifting skill priorities.
A Cool-Off in Overall Hiring
The Bank of England and ONS report fewer vacancies, around 736,000, a drop below pre-pandemic levels for the 35th quarter in a row, signifying a cautious hiring environment.
Employers are delaying hiring amid higher NI contributions, a living wage hike, and global uncertainty.
Bright Spots: Engineering, Tech & Commercial Finance
Engineering roles remain an outlier, as vacancies rise and employers compete for scarce specialist skills.
A 17% increase in commerce-led finance roles, including FP&A, ESG and transformation specialists, while financial firms scale back.
IT, Industrials, Property, Healthcare also show hiring intent - ranging from +21% to +47% in sector outlook
Skills over Degrees: The Big Shift
UK employers are increasingly embracing skills-based hiring - dropping degree filters and prioritising hands‑on abilities
There’s strong demand for AI, green-tech, and digital skills, alongside core transferable strengths like adaptability and problem-solving
AI in Recruitment: Tool & Challenge
AI is revolutionising candidate sourcing, automated screening, bias reduction, and better matching are boosting efficiency
Yet transparency is key: candidates expect disclosure about AI usage in applicant assessments.
Candidate Availability / Easy Hiring
The current rise in candidate numbers, due to redundancies, doesn’t make hiring simple; volume doesn’t guarantee quality .
The message? It’s quality-focused hiring, not just filling seats.
Hybrid Work & DE&I Still Non-Negotiables
Flexible models (hybrid/flexible hours) remain critical, with nearly half of UK professionals refusing roles without them.
DE&I remains a strategic priority: employers are investing in inclusive hiring processes and training
What This Means for You (and Your Clients)
Insight | Practical Tips |
Be strategic not reactive | Focus on critical roles in engineering, tech, and finance. |
Implement skills-first hiring | Use assessments & real-world tests over degree requirements. |
Leverage AI smartly | Improve screening efficiency, be transparent and include human checks. |
Sell culture, not just pay | Emphasise flexible work, upskilling, and growth pathways. |
Target talent pools | Look beyond active seekers, consider veterans, career-changers, and niche skills communities. |
Your Advantage with Resolve Recruitment Services
At Resolve, we’re tuned into these July 2025 trends:
Sector focus: We map our outreach to where demand is strongest.
Skills-first sourcing: Our screenings spotlight real abilities, not just certificates.
AI-enabled, human-grounded: We use smart tools, but always with a human lens.
Culture ambassadors: We help clients craft offers highlighting flexibility, DE&I, and development.
Talent diversification: We tap into non-traditional pipelines.
Final Thought
July 2025 in the UK recruitment landscape is all about navigating cautious markets and targeted talent strategies. By blending sector insight, skills-centred approaches, and candidate experience, Resolve can empower organisations to hire not just more, but better.
Need help aligning with these trends, or want to target a specific industry? Let's make your next hire truly game‑changing.