We were hoping the first UK jobs report of 2025 would reveal a revival in the recruitment market.
Unfortunately not.
The key numbers are once again showing hiring hesitancy, as economic uncertainty (caused by both UK and global factors) weighs on future business planning.
February’s KPMG/REC jobs report roundup
- Permanent placements continue to decline – although at a slower pace than in January, hiring caution persists across most sectors.
- Temporary billings contract further – demand for short-term hires remains weak, extending the decline to eight months.
- Starting salary growth slows to a four-year low – as staff availability rises, employers are offering more modest pay increases.
- Vacancy numbers continue to tumble – the decline in job openings stretches into its 16th consecutive month.
The Northern perspective
The North of England recorded the sharpest drop in permanent placements of all UK regions, with businesses holding back on hiring amid economic uncertainty. However, demand remains steady for senior hires in finance and technology.
Roles in short supply include:
- Finance Directors and CFOs – as businesses prioritise strong financial leadership.
- Senior IT and cybersecurity professionals – with digital transformation and security remaining key investment areas.
What this means for businesses
Now is the time to focus on:
- Retaining top talent – competition for senior finance and tech leaders remains high.
- Strategic workforce planning – aligning hiring decisions with long-term business needs.
- Investing in leadership – strong leadership teams are critical to navigating uncertainty.
Please submit the form below to download our latest Report On Recruitment for February 2025.
The Report on Recruitment is a monthly publication produced by S&P Global and sponsored by KPMG and REC.
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