The UK Job Market Is Shifting: Here’s What You Need to Know

After several years of record-breaking vacancy numbers, the UK job market is beginning to settle into a new phase. Recurring headlines about labour shortages and too many vacancies to fill are giving way to signs that the tide is turning.

Between May and July 2025, the ONS reported that job openings slipped by 44,000, bringing the total down to 718,000 – the lowest level we’ve seen since 2019. It’s a significant shift from the million-plus vacancies recorded in 2022 (BBC), but it also marks a turning point; one that could create different opportunities for both employers and jobseekers.

Rather than disappearing altogether, opportunities are simply taking a different shape. Employers are becoming more selective, candidates are facing stronger competition, and the balance between supply and demand in the workplace is shifting. Understanding what’s driving this change and how to respond to it is key for both businesses and job seekers.

Why Are Vacancies Shifting?

A few key trends are shaping the current market:

  • Rising employment costs: The April 2025 rise in the national living wage, coupled with higher National Insurance contributions, has made some businesses pause before hiring. For lower-margin industries like retail and hospitality, these additional costs can be significant.
  • Cautious business planning: With ongoing economic uncertainty, The Guardian highlights that many organisations are avoiding long-term commitments. Instead of replacing staff who leave, some are absorbing the work into existing teams.
  • Sector differences: Not all industries are slowing down. While some areas are shrinking, others, like construction, remain short of skilled workers, with around 38,000 roles unfilled annually and an estimated 240,000 new hires needed by 2029. This shows that while the overall picture is cooler, there are still “hot spots” of opportunity.

What Employers Should Keep in Mind

Hiring freezes might look like a quick way to cut costs, but the long-term implications can end up costing businesses far more in the future. Here are some things to consider:

  • Team wellbeing: When vacancies are left unfilled, existing staff often take on more work. This can lead to burnout, lower morale, and higher turnover, ultimately creating more disruption and expense than filling the role would.
  • Employer reputation: Candidates now place real value on workplace culture, flexibility, and wellbeing. A company that supports staff during challenging times will always be more attractive than one that doesn’t.
  • Forward planning: Businesses can explore alternatives to full-time hires, such as upskilling current staff, introducing flexible staffing models, or using temporary workers to manage peaks and troughs. This can help you stay agile without overcommitting.

What Jobseekers Can Do

With more people applying for fewer roles, job seekers need to position themselves strategically.

  • Show adaptability: Highlight examples of where you’ve solved problems or added value quickly. Employers want candidates who can hit the ground running.
  • Invest in yourself: Even short training courses or new digital skills can make a CV stand out in a crowded field.
  • Stay open-minded: Some industries are still crying out for talent. Exploring roles beyond your horizon – in construction, logistics, or technical fields, for instance – could uncover opportunities you hadn’t considered.

How Thrive Can Help

At Thrive Group, we support both sides of the market.

  • For employers, we provide recruitment strategies that ease pressure on existing teams, identify the right candidates, and plan for sustainable growth.
  • For candidates, we offer practical support on applications, interview preparation, and insight into where opportunities are strongest.
  • For both, we bring balance, ensuring decisions aren’t just about the short-term but help build resilience for the future.

Moving Forward with Confidence

The job market is shifting, but it’s far from doom and gloom. Vacancies may have dipped, but plenty of roles remain available across the UK, and the right talent is still in demand. For businesses, the challenge is balancing costs with keeping staff supported. For candidates, it’s about standing out and staying open to new opportunities.

Thrive is here to make that journey simpler, giving employers the people they need and helping candidates take the next step with confidence. Get in touch with us today to find out how our team can support your goals and help you move forward!