Stay ahead of the latest hiring trends

Important Hiring Insights for 2025

Here’s a look at the key hiring trends shaping the year ahead.

As we move into 2025, the UK job market is facing a complex set of challenges and opportunities. From sector-specific hiring shifts to the impact of economic changes on recruitment in 2025 strategies, businesses and job seekers alike must stay ahead of the latest hiring trends.

Slower Growth & Industry Challenges

The UK’s economic landscape remains uncertain as growth projections have been downgraded. Originally forecasted at 2% by the Office for Budget Responsibility, the UK economy is now expected to expand by just 1% in 2025. This reflects stagnant growth at the end of 2024, influencing hiring decisions across multiple industries.

Manufacturing Sector Contraction

Manufacturing continues to struggle, marking its fourth consecutive month of decline in January 2025. Factors such as rising costs, lower output, and reduced demand have resulted in the largest staffing reduction since February 2024. Businesses in this sector may need to focus on efficiency and automation to navigate these downturns.

Key Hiring Trends Across Industries

Renewable Energy

The UK’s commitment to clean energy is expected to generate between 135,000 and 725,000 new jobs. Programs like the Energy Skills Passport are making it easier for oil and gas workers to transition into renewable energy roles, particularly in offshore wind. This shift underscores the growing demand for sustainability-focused skill sets.

Technology, Healthcare & Engineering

These high-growth industries continue to experience talent shortages, driven by advancements in automation, AI, and post-Brexit workforce changes. Businesses looking to stay competitive must invest in attracting, training, and retaining skilled professionals to fill critical roles.

How Organisations Are Adapting Their Hiring Strategies

Upskilling & Wage Growth Over Workforce Expansion

Many employers are shifting their focus from expanding headcount to upskilling current employees and increasing salaries. A recent study found that

  • 48% fewer companies plan to expand their workforce in 2025.
  • 33% of businesses are prioritising salary increases.
  • 78% are investing in upskilling programs to develop in-house talent.

hiring insights

AI in Recruitment

Artificial intelligence is transforming recruitment, but adoption remains measured. Currently:

Challenges in the Education Sector

University Job Cuts Raise Concerns

Financial pressures are forcing UK universities to reduce staff and budgets, with one in four major institutions affected. This could result in up to 10,000 job losses, raising concerns about the long-term impact on skilled labour supply and scientific research.

Retail Sector Struggles

Retailers continue to grapple with declining foot traffic and financial difficulties. Several major brands, including WHSmith, Sainsbury’s, and Iceland, are set to close stores in February 2025. The shift toward e-commerce and evolving consumer habits are reshaping retail employment, pushing businesses to rethink their staffing strategies.

Conclusion

While economic uncertainty presents challenges, sectors like renewable energy, technology, and healthcare offer promising job opportunities. Employers are prioritising upskilling and retention over rapid expansion, and AI-driven recruitment in 2025 strategies are slowly gaining traction. As industries continue to adapt, staying informed on the latest employment trends will be key to success for both job seekers and businesses.

At ACS Staffing Solutions, we’re here to help businesses navigate the evolving recruitment in 2025 landscape. Whether you’re looking to attract top talent or future-proof your workforce, get in touch to explore how we can support your hiring needs in 2025.

For more insights and tailored recruitment solutions, get in touch with our expert team today.

Chris Wright
February 19, 2025
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