The UK labour market has shown steady demand in early 2025, with hiring activity displaying resilience across key sectors. However, the outlook remains uncertain due to cost increases introduced in April.
According to the latest Labour Market Tracker from the Recruitment and Employment Confederation (REC) and labour market analytics firm Lightcast, March 2025 recorded 1.6 million active job adverts, maintaining the level seen throughout the first quarter.
The report suggests that March’s hiring momentum may face pressure from recent policy changes, including higher National Minimum Wage rates and increased Employer’s National Insurance Contributions. While these changes raise employment costs, some optimism has emerged from positive GDP growth data for February, which indicated expansion across all major sectors of the economy.
Commenting on the findings, REC Chief Executive Neil Carberry acknowledged the pressure employers are under.
“There’s no denying it feels tough to employ people as the cost of taking workers on rises, but businesses are resilient, and they continue to create opportunities. With a steady 1.6m active job adverts out there, employers are seeing glimmers of hope,” he said. “The labour market is stabilising and February’s economic growth figures offered cautious optimism, while the UK looks relatively well-placed to weather some of the external shocks from shifting global trade policy.”
Agriculture and blue collar sectors show strong gains
In the agriculture sector, job postings rose by 4.2 percent from February to March 2025. The role of Farmers saw the sharpest increase, up 39.8 percent, making it the fastest-growing occupation nationwide. Agricultural and Fishing Trades not elsewhere classified (16.7%) and Biological Scientists (7.9%) also saw growth. However, there were declines for Farm Workers, down 1.7 percent, and Forestry Workers, down 12.7 percent.
Blue collar hiring also rose, with a 3.9 percent increase in job postings between February and March 2025. Roles such as Production Managers and Directors in Manufacturing increased by 11.4 percent, Skilled Metal, Electrical and Electronic Trades Supervisors by 8.8 percent and Production, Factory and Assembly Supervisors by 7.7 percent. Declines were noted for Fork-lift Truck Drivers, Assemblers of Electrical and Electronic Products and Packers, Bottlers, Canners and Fillers, with falls of 6.8 percent, 4.5 percent and 3.5 percent respectively.
Financial services hiring up as administrative roles decline
Finance and accounting roles saw a 1.6 percent increase in job advertisements in March 2025 compared to the previous month. Notable rises were observed in postings for Finance and Investment Analysts and Advisers and Purchasing Managers and Directors, both up 9.2 percent. Insurance Underwriters (7.2%), Financial Accounts Managers (5.4%) and Business and Financial Project Management Professionals (3.7%) also saw increases. In contrast, Financial Administrative Occupations not elsewhere classified fell sharply by 12.9 percent.
Secondary and primary education professionals also experienced an uptick in demand. The REC/Lightcast tracker recorded 25,896 adverts for Secondary Education Teaching Professionals in March 2025, up 5.8 percent from February. Primary Education Teaching Professionals saw a 9.6 percent increase, with 17,653 job postings.
Regional variations in hiring activity
Hiring patterns varied significantly across the UK. Central Bedfordshire saw the highest increase in job postings at 16.3 percent. Argyll and Bute maintained a strong performance for a second consecutive month, with increases of 23.5 percent in February and 22.7 percent in March. East Dunbartonshire reported a 24 percent rise in job adverts. Of the top ten counties for growth, nine were located in Scotland and Wales.
In contrast, the sharpest falls in job postings occurred in Lisburn and Castlereagh (-14.1%), East Derbyshire (-11.7%) and Fermanagh and Omagh (-10.8%).
Roles showing the strongest national increases in March 2025 included Farmers (39.8%), Delivery Drivers and Couriers (39.6%) and Rail Construction and Maintenance Operatives (29.1%). The largest falls were seen among Animal Care Services Occupations not elsewhere classified (-13.9%), Window Cleaners (-16.7%) and Probation Officers (-35.9%).
Carberry added that while business resilience remains, government support will be key. “Competitiveness matters to business, and the ability of the private sector to drive the growth that will solve the government’s fiscal headache,” he said. He also warned that without concrete policy direction, employer investment will continue to stall.
