Outlook for the UK recruitment market in 2025 remains positive despite economic pressures

Barrow Mount Recruitment’s latest report forecasts steady growth in the UK recruitment sector throughout 2025, driven by ongoing demand for skilled talent across key industries despite economic challenges.
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Barrow Mount Recruitment has released a new report forecasting steady growth in the UK recruitment market throughout 2025. Despite ongoing economic pressures, including inflation and interest rate uncertainty, demand for skilled talent across various industries is expected to drive market resilience.

The report outlines key trends likely to shape recruitment over the coming year, such as the continued rise of hybrid working models, increased investment in skills development, and digital transformation in hiring.

Charlotte Harrison, lead consultant at Barrow Mount Recruitment, said: “Employers are navigating an evolving talent landscape, and those who adopt flexible strategies are likely to be the most competitive.” Flexibility is expected to remain crucial as businesses balance operational needs with employee preferences.

Professional services, healthcare, and technology are highlighted as the sectors with the highest anticipated recruitment activity. Within professional services, roles in financial analysis and compliance are expected to see particularly strong demand, while healthcare continues to struggle with workforce shortages.

While salary inflation is slowing compared to previous years, it remains a key factor influencing hiring decisions. The report advises employers to offer competitive salaries alongside enhanced well-being benefits to attract and retain top talent. “Jobseekers are increasingly prioritising work-life balance and career development opportunities when considering new roles,” added Harrison.

Temporary and contract hiring is expected to rise, with businesses seeking greater agility in workforce planning. Recruitment agencies will play a vital role in meeting this demand by providing quick access to flexible talent pools.

Despite the challenges posed by the current economic climate, Barrow Mount Recruitment expects a resilient market in 2025, driven by the need to address persistent skill shortages and adapt to changing workforce dynamics. Harrison concluded: “The recruitment landscape will continue to evolve in response to economic pressures and workforce expectations. Businesses that invest in forward-looking talent strategies will be best positioned for success.”

The report is based on a survey of over 500 UK employers across multiple sectors, combined with detailed industry data and analysis.

Ryan Fowler

Ryan Fowler is Publisher of Workplace Journal

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