21st Feb 2025 04:48
(Alliance News) - The UK job market showed signs of recovery in January, with active job postings rising for the first time since June 2024, according to the latest labour market tracker from the Recruitment & Employment Confederation and Lightcast.
The number of active job postings increased by 7.2% from December to 1.5 million, while new job postings surged about 34% to 738,040, a stronger rebound than the 28% rise recorded in January 2024.
The data suggests employers are returning to the job market despite ongoing economic challenges. Every region in the UK saw an increase in job postings, with the East Midlands recording the highest rise at 12%, while London had the smallest increase at 3.4%.
REC Deputy Chief Executive Kate Shoesmith said the figures indicate it is "too soon for gloom" regarding the UK's economic outlook in 2025. "[The] increase in new jobs signals a solid rebound in demand, showing that businesses remain resilient, despite both domestic and international headwinds. We will look closely in the coming months to see if we are looking at a broader turn", she says.
However, she cautioned that fiscal uncertainty, rising national insurance costs, and potential regulatory changes could still weigh on employer confidence. "The government's increased focus on economic growth is encouraging, but fostering business confidence requires tangible actions, not just rhetoric.
"Ongoing fiscal uncertainty, looming national insurance increases, and a potentially burdensome employment rights framework may yet dampen momentum. For real growth, businesses need a clearer strategy on how government industrial policies will truly drive economic progress," Shoesmith said.
The strongest hiring activity was seen in the construction sector, where job postings rose over 13% from December, with demand for stonemasons, steel erectors, and carpenters increasing. Retail saw a more modest 3.9% rise, though postings for sales and retail assistants continued to decline, falling 8.4% after a steep drop in December. IT job postings edged up 1.3%, led by increased demand for quality & testing professionals and data entry administrators.
Job postings rose sharply in areas such as East Derbyshire, East Dunbartonshire, and Antrim & Newtownabbey, while Brent, Fermanagh & Omagh, and Dumfries & Galloway saw declines.
As expected following the holiday season, delivery roles recorded significant drops in job postings, with declines of over 47.% for postal workers and couriers and 73% for delivery drivers.
REC also highlighted ongoing recruitment challenges in the UK fashion industry, noting that job postings for textile process operatives, tailors, and dressmakers have nearly halved since mid-2023. Despite fluctuations in demand, the sector continues to struggle with talent shortages, which said it could impact domestic manufacturing.
By Eva Castanedo, Alliance News reporter
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