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Labour Market Trends - August 2025

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Lizzie Tasker Blog

​Every month, we share the latest labour market trends based on statistics from the ‘UK Report on Jobs’ by KPMG and Recruitment and Employment Confederation (REC) as well as our own first-hand experience from within our regions.

The report is compiled by S&G Global, based on a monthly questionnaire sent to a panel of approximately 400 UK recruitment and employment agencies – including ourselves.

Key Points

  • The total number of active job listings in August 2025 showed a decrease of 1.6% compared to July 2025

  • The number of new jobs advertised in August 2025 was down 3.8% compared to July 2025

  •  It is typical to see this level of decrease in August as summer holidays and annual leave contribute to a seasonal lull

  •  The bigger picture shows tentative signs of recovery, hinging on employer confidence and the outcome of the Autumn budget

Seasonal Lull

As we reach the tail end of the summer, it is the norm to see declines in active job listings in August. School summer holidays bring a higher concentration of annual leave, slowing business decisions and hiring capabilities.

Increasing Candidate Availability

Candidate numbers continue to increase, extending the trend’s streak to 29 consecutive months now. Anecdotal evidence from recruiters is still attributing this to redundancies and fewer job opportunities.

Employer Confidence

Whilst employers confidence has remained low all summer, in turn it has bolstered demand for temporary staff, leveraging the flexibility that comes with the ability to scale up and down quickly.

Neil Caberry, Chief Executive of the REC says

“All eyes are now on the Autumn Budget, in hope now that the Chancellor won’t do any further damage to the labour market with costs on hiring. For the economy to thrive, the Budget must recognise the need for investment in people. Long-term investment in skills, workforce stability, a more practical approach to the Employment Right Bill and meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”