Despite cost pressures from April’s policy changes, UK employers continue to drive demand across finance, agriculture, and manufacturing.
The UK’s recruitment sector is showing signs of quiet strength in early 2025, with hiring momentum holding firm across key industries despite mounting cost pressures tied to recent policy changes. According to the latest Labour Market Tracker released by the Recruitment and Employment Confederation (REC) and labour market analytics firm Lightcast, job postings in March remained at a robust 1.6 million — steady with figures from the first quarter.
This steady demand comes just as businesses begin to absorb a raft of April changes, including hikes to the National Minimum Wage and increases to Employer’s National Insurance Contributions, both of which have raised the cost of hiring.
“It’s a tough environment to bring people on board,” said REC Chief Executive Neil Carberry. “But the data shows that businesses are still moving forward — cautiously but with purpose. There’s clear resilience in the labour market.”
Sectors Fuelling Growth
Agriculture emerged as a surprising leader in job growth, with postings rising 4.2% month-on-month. The demand for Farmers spiked by 39.8%, making it the fastest-growing occupation nationwide. Other roles within Agricultural and Fishing Trades and Biological Sciences also showed gains, reflecting increased seasonal and sectoral activity.
Blue collar hiring also rebounded strongly. March saw a 3.9% rise in postings across manufacturing and trade-related positions. Notably, postings for Production Managers and Directors in Manufacturing rose by 11.4%, while Supervisory roles in skilled trades saw near double-digit increases.
In financial services, traditionally seen as a bellwether of broader economic confidence, hiring was up 1.6%. Finance and Investment Analysts, Purchasing Managers, and Insurance Underwriters all saw significant gains. However, support roles — particularly Financial Administrative Occupations — experienced a sharp 12.9% drop, suggesting that companies are tightening budgets in non-revenue generating areas.
Education and Regional Highlights
The education sector also saw improved hiring activity. Secondary Education Teaching Professionals recorded a 5.8% rise in postings, while demand for Primary Education teachers rose by 9.6% — indicating potential staffing shortages or increased school budgets.
Geographically, hiring trends were uneven. While English counties like Central Bedfordshire posted a 16.3% uptick in job ads, the standout performers were overwhelmingly in Scotland and Wales. Argyll and Bute continued its hiring boom with a 22.7% monthly increase, and East Dunbartonshire topped the list with a 24% surge.
Conversely, regions like Lisburn and Castlereagh (-14.1%) and East Derbyshire (-11.7%) faced notable declines, highlighting the uneven impact of rising employment costs and local economic factors.
Pressure Points and Policy Risks
Despite the optimistic figures, the recruitment industry remains wary. April’s increased employment costs are likely to weigh heavily on small and medium-sized enterprises (SMEs), many of which are already contending with narrow margins and higher input costs.
“There’s resilience, but it’s under strain,” Carberry noted. “Without clearer, long-term policy direction from government, businesses may delay investments in people and training — and that could stall the broader recovery.”
While February’s GDP data offered a glimmer of hope, showing growth across all major sectors, business leaders are urging policymakers to support competitiveness and reduce friction in hiring if the recovery is to be sustained.
As employers continue to adapt to cost realities, the recruitment industry will remain a crucial indicator of broader economic health — and a key pressure point for policymakers seeking growth without sacrificing jobs.
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