The UK economy performed better than expected this year, with growth set to quicken in 2025. Despite this, new research from the global hiring platform, Indeed, points to less favourable labour market conditions leading into the new year, with government policy changes presenting multiple headwinds.
Indeed’s 2025 Jobs & Hiring Trends Report reveals a 24% decline in UK job postings on Indeed over the past year, the largest decline seen in peer countries including Australia, Canada, France, Germany and the US.
And with the combination of a hike in employer National Insurance contributions and lowering of their threshold, higher minimum wages, increased business rates and a new workers’ rights package, employers will likely continue with caution when it comes to hiring in 2025.
Job postings have fallen in almost all occupational categories in 2024
UK Job Postings: A Slow, Sad, and Surprisingly Remote‑Friendly Slump
In the past year, the UK’s hiring clouds have settled into a deep, grey drizzle. Of the 48 career clusters tracked by Indeed, only the legal sector has managed a bright uptick – a solid +12 % jump. Everywhere else, things feel a bit… down in the dumps. The biggest plunges hit the veterinary, electrical‑engineering, and security & public‑safety fronts.
Remote‑Friendly Jobs Aren’t Getting the Love They Deserve
Surprisingly, the very categories that usually shine with remote‑work perks are also the ones we see slipping away the fastest. Tech, of course, is the most glamorous of the “can‑work‑from‑home” fields, but it’s still lagging behind. Add to that several professional segments – think finance, consulting, and design – and you get a full timetable of under‑performing hires.
What’s Your Take on the Signing Bonus Drop?
Another telling sign of the slowdown is that companies are dropping the “nice‑to‑have” incentives. The share of job ads that mentioned a sign‑ing bonus fell from a high of 2.1 % in February 2023 to just 1.0 % by October. That’s a clear hint: employers are having a harder time finding the right folks, and they’re tightening the purse strings.
Bottom Line: The Job Market’s Taking a Sneeze‑Bite
- Legal sector: +12 % growth
- Veterinary, electrical engineering, security & public safety: biggest drops
- Tech & other remote‑friendly fields: trending weakest
- Signing bonuses: down from 2.1 % to 1.0 %
So, whether you’re job‑hunting or hiring, the UK market’s currently a mixed bag. Keep your eyes peeled—downs today could mean an upside tomorrow. Stay hopeful, stay flexible, and keep the remote coffee machine on standby!
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Wage growth has persisted, but is likely to weaken
Wage Growth on a Slow‑Motion Track
The labour market’s gentle slip means employers are pulling the roping line a bit tighter. That’s making wage rises look more like a leisurely stroll rather than a sprint. Once the new National Insurance bump hits in April, it could throw another wrench in the gears of pay hikes.
Low‑paid sectors – like security, retail, customer service, cleaning, and even childcare – all posted growth rates of 8.0% or more in October. So, even if the top-tier displays a steady climb, the bottom‑tier is still making quite a splash.
So the wage wagon keeps moving, albeit a tad slower—no rush for the road ahead!
Zero hours contracts gradually rise ahead of policy changes
Zero‑Hour Contracts: The Surprise Upswing
While the government’s latest legislative push aims to clamp down on zero‑hour contracts, the numbers don’t seem to be whipping out the protest sign. In October, the fraction of job adverts that list a zero‑hour arrangement surged to 1.9 %—a climb from roughly 1.1 % in early 2022.
Where the Zero‑Hours are Spilling Out
- Sports – 8.5 % of all sports-related ads mention a zero‑hour contract.
- Personal Care & Home Health – 6.0 % of postings in this arena.
- Hospitality & Tourism – 5.9 % of the gigs advertised.
Why the Numbers Keep Rising
It turns out the flexible workforce is gaining traction, especially in low‑wage sectors. Employers see it as a way to keep staffing costs predictable, while workers—some hope—see it as a cash‑flow solution. The conflict? The very same flexibility that garners business interest might leave workers without guaranteed income and stability.
What’s the Bottom Line?
If the political tide stays firm, the hope is that provision changes will push the trend back down. Until then, it feels kinder to call this a “zero‑hour marathon” rather than a stumble.
Pay transparency is rising
Pay Transparency on the Rise in the UK (Even After Brexit)
What’s Happening?
Even though the UK has stepped out of the EU’s upcoming pay‑transparency rules, British firms are stepping up their own game. Over the last five years, job ads in the UK have gone from less than 50 % to 72 % that actually disclose a salary range.
Why the Change?
- Top talent magnet – People can see right away whether the pay fits their expectations.
- Speedy hiring – Recruiters save time by matching budgeted salaries with applicant expectations from the start.
- Fairness feels good – Transparency boosts trust, showing candidates that the firm values openness.
All In on the Numbers
When job postings list pay, candidates gain a clearer picture of what’s on offer. This clarity helps both sides: employers attract the right people, and candidates avoid the “do I even fit?” anxiety.
The Bottom Line
Despite the EU taking a step back, UK companies are looking forward and feeling the benefits of paying right, publicizing pay, and saying, “Here’s what we’re offering. Be honest, and let’s make a match.”
Remote and hybrid work persists despite RTO push
Workplace War: Office Return vs. Remote Rattle
While the return‑to‑office (RTO) buzz keeps roaring, the UK still sees a sizeable splash of remote or hybrid job postings—14.6% to be exact. It slipped a touch from a May high of 16.3% but remains far above the pre‑pandemic 3% baseline—proof that the office‑only dream is still a distant one for many.
Remote Love Continues
Even when employers lean into on‑site roles, many are slipping flexible perks up their resumes. A four‑day work week is now the headline of veterinary (16.2%), childcare (4.0%) and education & instruction (2.5%) listings—jobs that literally cannot be done from a hammock.
Other Flex Options Flying in the Wind
- Hybrid perks pop up in over 12% of postings.
- Zero‑hour contract rates creep higher by ≈5% in the last quarter.
- Signing bonuses see a strike‑down as companies become more conservative.
Jack Kennedy’s Take on the Economy
Senior Economist Jack Kennedy says the 2024 economy is surprisingly resilient. Yet, as 2025 looms, the labour market health will dictate the next play. While the fear of a hard downturn hasn’t materialised yet, slower job growth, muted wage rises, and rising taxes could squeeze workers’ pockets.
Industry Highlights
- Engineering & installation/maintenance shine thanks to a zero‑hour push for house building and green energy.
- Public‑sector champs like education and healthcare might see boom as hiring rises.
- Knowledge work remains a no‑luck zone for many.
Jobs for the Hungry, Employers for the Gold
Employers need to keep their pay and perks buckets full—remote, hybrid or four‑day— to snag the best talent. Even as the market softens, the scale tilts toward employers: fewer postings, fewer bonuses, a wage plateau, and a rise in zero‑hour gigs.
So, in this ever‑evolving scene, whether you’re a seasoned professional, a fresh graduate or a career‑switcher, keep your eyes peeled—remote’s still on the menu, four‑day weeks are popping up in hot spots, and the market knows: flex makes the difference.
