What’s happening in the job market?

The UK job market is shifting. Candidate availability has hit its highest level since late 2020. According to the Recruitment & Employment Confederation (REC), permanent candidate numbers are rising at the fastest rate in three years.

Why does this matter for employers?

This shift means the market is no longer dominated by candidates – employers now have more options. With more talent available, hiring strategies, salary conversations, and competition all look different. Permanent starting salaries are rising at their slowest rate since March 2021, which shows how the balance is changing.

How has the market changed?

In August 2025, candidate availability hit its highest level since November 2020, with both permanent and temporary labour supply rising rapidly.

Permanent placements have now declined for over 30 consecutive months, reflecting persistent caution in long-term hiring decisions. Job vacancies have fallen approximately 21% below pre-pandemic levels, with graduate hiring postings down 33% year-on-year. Employers are clearly adapting their workforce models to stay flexible.

Market analysts expect cautious optimism for a modest upturn in Q4 2025 and into 2026, though recovery will be gradual as business confidence slowly returns.

What’s behind the increase in candidates?

A mix of economic uncertainty, sector-specific layoffs (especially in tech), and company restructuring is putting more skilled people back into the market. On top of this, post-pandemic preferences around work have shifted, with many professionals rethinking their careers.

How should you adjust your recruitment strategy?

To attract and retain the right people in this climate:

– Revisit your employer value proposition to make sure it still resonates.

– Benchmark your salaries against current data.

– Use tech, such as AI-driven screening tools, to manage higher application volumes.

– Build strong talent pipelines and keep your employer brand visible.

Best practices for hiring right now

Candidate experience should stay front and centre. Structured, skills-based assessments are key when dealing with larger pools. Competitive pay still matters, but so does showing candidates clear opportunities for growth and development.

The impact on hiring teams

With more applications coming in, recruiters need sharper screening methods. This is both a challenge and an opportunity – bigger talent pools mean greater access to specialist skills. The focus is shifting from pure attraction to smart selection and brand-led recruitment.

Challenges to watch out for

– Higher application volumes can stretch processes and harm candidate engagement if not managed well.

– Balancing quality with speed in assessments is tricky.

– Cost-efficiency is under pressure – efficient processes are non-negotiable.

Optimising your hiring process

Set clear criteria upfront and automate early screening where possible. Standardise assessments to stay consistent, and keep candidates engaged with regular updates. Feedback loops and process reviews help you keep improving.

What does this mean for job seekers?

Competition is tougher. Standing out means sharpening your personal brand, growing your network, and upskilling in high-demand areas like digital and data. A clear value proposition and strong examples of your achievements will help you cut through.

FAQ

1. How long will this trend last?
Analysts expect it to run through 2025, with possible stabilisation in 2026.

2. Should salaries be lowered?
No – competitive salaries are still crucial for securing the best talent.

3. How can SMEs compete with bigger employers?
Lean into culture, flexibility, and career development. These matter as much as salary to many candidates.

4. Which skills remain most in demand?
Digital expertise, data analytics, and adaptability.

5. How can candidates stand out?
Highlight measurable achievements and specialist knowledge that set you apart.

Final thoughts

This shift in the job market brings both challenges and opportunities. For employers, it’s about finding balance – efficient processes, smart use of tech, and a strong employer brand. For candidates, it’s about positioning yourself clearly and confidently. Those who adapt fastest will benefit most. Contact Cherry Professional and stay ahead in the job market.