New data suggests that the UK job market is showing signs of stability, with some employers “feeling ready to hire”.
According to the latest Recruitment & Employment Confederation/Lightcast monthly Labour Market Tracker, there were 1,550,191 active jobs posted in February. This represents a 0.1% increase from January.
The number of new listings fell by 10.8% in the same time period. The decline was expected, however, because hiring is usually higher at the beginning of the year. February also includes a week-long school holiday.
The number of active job postings increased by 7.2% between December 2024 and January 2025, the first time since June 2024. The number of new job postings increased by 34.4% compared to January 2024, which was a 27.9% increase.
Neil Carberry, chief executive of the REC, commented on the findings: “Firms are working hard to find a growth strategy in spite of rising costs, and it’s reassuring to see that some firms feel more prepared to hire.” The growing stability of demand is reassuring for policymakers and recruiters, especially in light of the difficult outlook that businesses face due to national insurance increases, wage increases, and global political shifts.
The data showed that the most significant increase in the number of job openings was in Scotland (7.7%), followed by the East Midlands (2.0%), while the largest decreases were seen in the South West (1.2%), and North East (0.9%).
The data also showed an increase in the hiring of construction workers.
Carberry stated: “The increase in job advertisements for construction is noteworthy, given recent concerns regarding the strength of this bellwether industry. Adverts for the hospitality industry are also on the rise. “We are waiting for a sustained recovery of IT recruitment. However, there are still many opportunities for these workers, with nearly 12,000 job postings for IT business analysts and architects, and 30,000 for software developers and programmers.”
This month, the tracker showed an increase of job postings for landscape gardeners (33.1%), teaching professionals not otherwise classified (22.7%), and rail construction and maintenance workers (20.3%). The largest decreases between January and the end of February 2025 were for veterinary nurses, delivery drivers and couriers and train and tram operators.
The Resolution Foundation’s employment data, released today as well, shows a decline in hiring at a pace that is comparable to a recession. In fact, the think-tank has warned that the UK job market is now “in recession territory”.
Carberry continued, “The government needs to deliver a spring announcement that is not just optimistic but also sets out a clear strategy for long-term growth in order to unleash more of the latent hiring and investment demand that we think is there.” To achieve this, we must work in partnership with businesses to close skills gap, drive innovation and expand employment opportunities. The government should make a good pitch, and then let the business handle the results.
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