At Harris Lord, we’re committed to keeping our clients and candidates informed with the latest data and honest commentary on the changing labour market.
The KPMG and REC Report on Jobs (May 2025) gives us a strong sense of where the market is heading. And while there are some signs of stabilisation, recent data tells us that both employers and candidates in England are navigating a cautious and highly competitive landscape.
Here’s what the numbers, and our experience, are saying.
Across England, permanent staff placements dropped for the 31st consecutive month. That said, the 44.7 index reading for April (anything under 50 = contraction) was the least severe decline in seven months.
📍 In London, the drop was mildest, hinting at slightly stronger confidence among capital-based employers.
📍 The South of England saw the most pronounced slowdown, reflecting tighter budgets and greater hiring hesitation.
Temporary hiring also declined for the 10th straight month, with a national index reading of 46.3. Again, this is better than earlier in 2025, but it highlights how uncertainty around costs and future demand is making companies reluctant to commit, even to short-term staff.
📍 The steepest fall was seen in the South, whereas London showed stronger resilience with billings near pre-decline levels
Availability of both permanent and temporary candidates surged again in April. This marks the second-fastest rise in candidate supply since December 2020. Why?
In England, all regions reported substantial increases in jobseeker availability, with the Midlands and North seeing particularly high spikes for temp roles.
Pay for new starters continued to grow, but more modest than historical trends.
This suggests that wage inflation is being driven more by legislative change than by employer competition, at least for now.
The Total Vacancies Index for April was 43.1, showing a further decline in employer demand. This marked the 18th month in a row that vacancy levels have fallen.
In healthcare specifically, demand fell dramatically:
Skills shortages continue, but vary by region and sector. In England, engineering, IT, HR, and healthcare roles are still in high demand.
In-demand skills (England, May 2025):
Oversupplied areas:
For Employers
For Candidates
We’re here to guide you through the data, the noise, and the uncertainty. Whether you're a business navigating hiring freezes or a candidate exploring your next move, we can help you act with clarity.
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