2025 market trends and hiring forecasts

Can you believe it’s Autumn already? For some, this new season marks the final march towards securing new teams ahead of the festive rush. The future gazers among you will already have your sights on planning hiring budgets and strategies for next year.  

Our latest Talent Trends insights reveal that 54% of workers say salary is the most important thing when accepting or applying for a role. Are you confident you’re offering enough? With over a third (34%) of UK workers ready to make a career move in the next three months, will you be ready?

We’ve got new Michael Page 2025 Salary Guides to help you make informed hiring decisions, whatever the weather.

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UK job market trends in a nutshell:

60% of organisations have struggled to hire in the last 12 months, with matching salary expectations cited by 49% as a main reason, meanwhile 48% of companies have struggled to find the right skills.

The competition for top talent in the UK job market is heating up as candidates are being more selective, and prioritising job satisfaction as well as higher pay. Candidate caution is seeing 51% of workers feel stagnant due to a mix of factors from economic uncertainty to limited opportunities for promotion and pay increase.

A combination of influencing factors like these have caused a tug of war between job seekers and employers, leading to longer hiring processes and increased costs. Additionally, the rise of hybrid work has blurred the lines between work and personal life, presenting challenges for businesses in terms of promoting office presence and collaboration while balancing employee well-being and flexibility.

A staggering 43% of workers feel they have missed out on a great career opportunity because of hesitancy to leave a job. The appetite to find new opportunities is out there! So, the big question is, how can employers instil confidence and drive movement in the labour market? Read on to find out.

Challenges and opportunities to be found in 2025 market trends

While the competition for top talent is fierce, job market trends for the UK present opportunities to attract and retain the best people in 2025. By offering competitive compensation, benefits, and a positive work culture, businesses can attract and retain top talent. To navigate the 2025 UK job market successfully, businesses should:

• Invest in employee experience: Creating a holistic positive work culture will be key. Offer competitive benefits, prioritise employee well-being and learning and development. Take heed, as 39% of workers feel they have limited opportunities for promotion or pay increases. While a pay rise isn’t always an option, there are other ways to show your employees you value them, such as investing in career development and growth opportunities.
   
• Refine hiring strategies: Soft skills will be in high demand as AI takes centre stage. Focus on assessing candidates' soft skills in addition to technical qualifications. Consider using AI-powered tools to streamline the hiring process.
   
• Embrace AI: Prioritise innovation. AI can be used to streamline hiring processes, improve productivity, and enhance decision-making. Understand how AI can be used to augment human capabilities and improve efficiency. Invest in upskilling your workforce to leverage AI technologies effectively.
   
• Adapt to hybrid work: Implement policies and practices that support employee productivity and well-being in a hybrid work environment. With 66% of workers expressing satisfaction with their work-life balance – a reason to stay put – it's clear that employees value flexibility and time off! Employers who can offer hybrid working arrangements, flexible hours, and generous leave policies will be more attractive to top talent.
   
• Stay competitive: Continuously monitor market trends and adjust your hiring strategies and compensation packages to remain competitive. With 43% of workers seeking a higher salary, don’t let outdated salary be the hurdle to set you back!

Our Salary Guides provide the data-driven insights you need to attract top talent and build a high-performing team. Let's discuss how we can tailor recruitment solutions for your specific needs.

By understanding the key challenges and opportunities, and implementing these strategies, you can position your business for success in the competitive UK job market. To thrive in this competitive landscape, organisations must invest in employee experience, refine hiring strategies, embrace AI, adapt to hybrid work, and stay competitive.

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For local insights in your specific sector, explore Michael Page's 2025 Salary Guides now to gain valuable insights into the latest market trends and identify areas where you may need to adjust your hiring strategies and compensation packages.

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