UK labour market witnesses moderated increase in job postings, sparking more optimism than apprehension - REC (paraphrased)
The UK job market demonstrated resilience in May 2025, despite broader signs of slowdown and fragility in the overall economy, according to the Recruitment and Employment Confederation (REC) / Lightcast Labour Market Tracker.
Key factors contributing to this resilience include modest growth in new job postings, regional boosts linked to tourism, a growing labor supply, and a labor market that was not deteriorating rapidly despite macroeconomic pressures such as inflation and uncertainty.
New job postings slightly increased by 0.3% to 726,084 in May compared to April, signalling steady hiring activity rather than decline. Scotland and the South-West, in particular, saw strong increases of 9.2% and 4.7% respectively, likely due to seasonal growth linked to the summer tourist season.
Neil Carberry, REC Chief Executive, highlighted that while tax rises and lower economic growth remain challenges, the UK labor market was "more stuck than going backwards," indicating a certain degree of underlying resilience and position to capitalize on growth opportunities.
Data from June also indicated that the supply of labor expanded at the fastest rate since late 2020, suggesting more candidates were available to fill roles, though vacancies overall continued to decline.
However, not all sectors fared well. The agriculture sector experienced a 0.3% decrease in job postings, with the roles of Farmers and Farm Workers seeing the greatest falls in demand (-10.5% and -6.9% respectively). On the other hand, the hospitality sector saw a 4.5% decrease, with roles such as Leisure and Sports Managers and Proprietors, Housekeepers and Related Occupations, and Business Associate Professionals all showing an increase.
The retail sector also experienced a 1.5% decrease, with the top three roles showing the largest increase being Retail Cashiers and Check-out Operators, Collector Salespersons and Credit Agents, and Florists. However, Elementary Sales Occupations n.e.c. and Telephone Salespersons saw a decline for the second month in a row.
Delivery Drivers and Couriers, Food, Drink and Tobacco Process Operatives, and Business Associate Professionals all showed the largest increase in roles from April 2025 to May 2025. In the agriculture sector, Forestry workers and Biological Scientists saw the biggest increase.
The overall number of active job postings in May 2025 was 1,440,792, a decrease of 1.8% from April 2025. Causeway Coast and Glens, Dumfries and Galloway, and Westminster showed the highest increase in job postings for the second month in a row, while Newry, Mourne and Down, Ards and North Down, and Camden and City of London accounted for the sharpest decline.
In summary, the job market resilience was reflected in modest increases in new job postings, regional boosts linked to tourism, a growing labor supply, and a labor market that was not deteriorating rapidly despite macroeconomic pressures. This nuanced dynamic led REC to describe the May 2025 trends as "more of hope than concern" amid ongoing challenges.
The increased job postings in specific regions like Scotland and the South-West, coupled with the expanding labor supply, indicate a degree of resilience in the UK business sector, potentially relying on finance to capitalize on growth opportunities. Despite some sectors facing a decrease in job postings, such as agriculture and retail, others like hospitality, delivery, and retail cashiers experienced growth, demonstrating the complexities within the UK's financial and business landscape.
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