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:
Job postings in December down 11.1% on November – typical of seasonal trends
It’s usual for hiring to dip in December but 2025 saw a bigger downturn than December 2024
Candidate availability grows – with redundancy cited as main reason
SEASONAL HIRING TRENDS AS EXPECTED
The trends seen across November and December 2025 were typical of what we’d expect for this time of year. Seasonal recruitment tends to happen in the lead up to Christmas – building from late summer onwards, then slowing by December – suggesting by then, firms have the staff they need to cover a period of peak trading, already in place.
For example, the biggest drop came in the category of ‘Postal Workers, Mail Sorters, Messengers and Couriers’ with a 31.7% decrease on demand for hires from November to December, with staff involved in making sure all of our online shopping / Black Friday / Cyber Monday purchases reach us in time for Christmas.
YEAR ON YEAR INSIGHTS
What’s perhaps more telling of the overall picture is the 7.4% downturn in December 2025, when compared with the same period, affected by the same seasonal pressures, in December 2024. It’s a snapshot which is representative of the wider mood of 2025, a market shadowed by economic uncertainty and rising costs.
CANDIDATE AVAILABILITY
For yet another month, candidate availability rises – with the research showing recruiters attributing it mostly to redundancy.
SUMMARY
The picture ahead for 2026 remains unclear; will the trends of 2025 – rising unemployment amidst subdued hiring, continue? Or will the tide start to turn? The messages from experts are mixed – will the start of the year set the tone for what lies ahead, or do we need to wait and see whether the Government can inject some confidence into business? Aware of the Employment Rights Act 2025, businesses know changes are looming – which will eat into time and resources as these begin to filter out, there’s a chance that focus could be shifted here rather than on new hires and growth.
REC Chief Executive Neil Carberry OBE said:
“The late Budget meant that few firms had time to put revised hiring plans into place before the Christmas break, contributing to a sharper December downturn than usual. All eyes are now on January for signs of recovery. There is some optimism for hiring in employer survey data, but it is persuading firms to take the leap that matters. Even so, jobseekers still enjoyed plenty of choice with total new postings last month roughly matching the population of Edinburgh.
“There is a startling variety in the occupations that grew in demand in 2025, although they loosely relate to key trends for the year ahead in infrastructure, net zero and demographic changes. The sharpest declines in job postings last year hit roles most exposed to automation, digitalisation and cost pressures.
“If the government wants firms to have confidence to grow, it needs more than interest rate tweaks. It must champion enterprise and investment, make its industrial strategy more impactful, tackle soaring costs such as energy and avoid tax hikes that stall growth.”