UK Jobs Market Insight - August 2025
Wages Up. Vacancies Down. What Employers Need to Know Now.
The latest UK jobs market August 2025 figures from the Office for National Statistics (ONS) reveal a mixed; and in some ways unusual picture.
While wage growth remains strong, job vacancies continue to decline, and unemployment is at its highest point in four years.
The Numbers at a Glance
Unemployment: 4.7% – highest since 2021 (UK unemployment rate 2025)
Vacancies: 718,000 – lowest since April 2021 (UK vacancies August 2025)
Payroll employment: Down for the sixth consecutive month (-8,000 in July)
Regular pay growth: +5% (UK wage growth 2025)
Total pay growth (incl. bonuses): +4.6% — bonuses are being scaled back
For more context on these shifts, see Reuters’ coverage of the August 2025 labour market.
What’s Driving the Shift?
Many employers, especially in labour-intensive sectors, are under pressure from:
Rising wage bills and higher employer taxes
Minimum wage increases
Slowing economic growth is impacting demand
This is a key point in the UK hiring trends August 2025 — for some businesses, it means slowing recruitment and focusing only on essential hires.
For others, it’s a chance to secure talent while competitors hesitate.
What This Means for Employers
Even in a slower market, specialist skills remain hard to find. The fight for top performers hasn’t disappeared; it’s just changed shape.
Key trends we’re seeing:
Flexible hiring (temporary, interim, contract) is growing as a way to control costs without losing capability — an essential tactic in how to hire in a downturn
Candidates are placing greater emphasis on culture, stability, and career progression over headline salary alone
Hiring decisions are taking longer as budgets tighten and approvals take more steps
How Yellow Bricks Temps Can Help You Adapt
At Yellow Bricks, we’re working with employers to:
Rapidly fill urgent skills gaps with high-calibre temporary staffing UK
Secure permanent hires who fit the culture and will stay for the long term
Provide workforce strategy advice to navigate uncertain conditions
Whether you need interim recruitment UK or a long-term recruitment plan, our insight into the current market means we can help you move fast and hire smart.
