Hiring Trends Index: a look at the recruitment landscape of April 2025
The UK job market continues to evolve, shaped by economic shifts and employer hiring strategies. In this edition of the Hiring Trends Index, we analyse the key recruitment patterns of the first quarter of 2025 and look ahead to what’s on the horizon for Q2.
The April edition of our Hiring Trends Index is here to unpack the latest insights garnered from 1,000 HR decision-makers in the UK, delivering a comprehensive view of the latest trends in the recruitment landscape.
Hiring Trends Index – market overview
Despite economic headwinds, the UK labour market remains resilient. Job vacancies are holding steady above pre-pandemic levels at 816,000, with employment at 75% and unemployment rising slightly to 4.4%, according to figures from the Office for National Statistics. GDP growth remained modest at 0.2% in the three months to January 2025, while inflation edged up to 2.8% year-on-year in February.
Hiring activity in Q1 2025 saw an uptick, with 27% of businesses increasing recruitment efforts and 89% onboarding new employees. The average time to hire also shortened to 4.6 weeks from 5.1 weeks in Q4 2024, suggesting a more efficient hiring process despite ongoing challenges.
At the same time, employee turnover remained a concern, with 25% of workers leaving their roles in search of better opportunities. Other leading reasons for job moves included personal circumstances (29%) and health-related concerns (18%).
These figures indicate a workforce that is actively seeking career progression, better pay, and improved work-life balance. For employers, this means retention strategies need to be re-evaluated, particularly in sectors where turnover is high.
Top takeaways from Hiring Trends Index April 2025
- 27% of businesses increased hiring in Q1 2025
- 68% of recruiters are confident in securing talent for Q2 2025
- 24% of employers plan to expand their teams in Q2 2025
- Average time to hire dropped from 5.1 weeks to 4.6 weeks
- 65% of businesses cite finding skilled candidates as their top hiring challenge
What’s next? The hiring outlook for Q2 2025
The hiring outlook for the next three months presents a mix of opportunities and challenges for employers.
Nearly 1 in 4 businesses (24%) are set to restructure their teams in Q2, up from 21% in the previous quarter. Additionally, reliance on freelance staff has risen slightly to 23%, though it remains below the 27% peak seen in Q1 2024. This suggests that businesses are seeking flexible workforce solutions but have not yet returned to pre-2024 levels of freelance reliance.
The proportion of employers planning to expand their teams has climbed to 24%, an increase from 21% in Q4 2024, though still trailing the 27% recorded in the same period a year ago. This cautious but optimistic hiring intent seems to reflect broader economic uncertainties and ongoing skills shortages. It also suggests that while businesses are eager to grow, they are doing so in a measured way, balancing investment in new talent with the need to maintain financial stability.
While 68% of recruiters express confidence in their ability to hire the right people in Q2 2025, this figure, though up from 66% in Q4 2024, remains lower than 74% in Q3 2024. This trend suggests increasing competition for top talent, particularly in industries facing skills shortages.
Industry-specific trends
While confidence in hiring remains strong overall, certain sectors are particularly optimistic about attracting talent over the next three months. Chief among these are:
- IT & Telecoms (79%)
- Finance & Accounting (78%)
- Professional Services (70%)
These figures highlight the continued demand for digital, financial, and consultancy expertise. As businesses accelerate digital transformation and adapt to regulatory shifts, skilled professionals in these industries are increasingly sought after, leading to greater competition among employers.
Sectors planning the most activity in the next three months
When it comes to potential hiring increases, the sectors planning the most activity for Q2 2025 include:
- Hospitality (35%)
- Professional Services (34%)
- Logistics & Transport (29%)
A closer look at Hospitality reveals high demand for customer service skills (53%) and people management experience (36%). Encouragingly, 70% of employers in the sector are optimistic about their recruitment prospects.
This confidence is likely driven by post-pandemic recovery, rising consumer spending in leisure and dining, and seasonal hiring as businesses prepare for peak demand in the summer months.
Top hiring challenges in 2025 so far
Recruiting in 2025 is proving to be a complex challenge for many businesses, with employers needing to navigate persistent skills shortages, rising costs, and inefficiencies in the hiring process.
Understanding these key hurdles is crucial for organisations looking to refine their recruitment strategies and remain competitive in a fast-changing job market.
Persistent skills gaps
Finding candidates with the right skill set remains the primary challenge for 65% of employers. While this represents a slight improvement from 66% in Q4 2024, it still indicates the ongoing nature of this challenge.
Industries struggling most with skills shortages include:
- Education (26%)
- Manufacturing (24%)
- IT (23%)
- Logistics (20%)
Top skills employers are looking to hire for
| Q1 2025 | Q4 2024 | |
|---|---|---|
| Technical skills | 33% | 28% |
| Customer service | 33% | 28% |
| Leadership skills | 29% | 25% |
Rising hiring costs
Cost pressures are another major concern for businesses when it comes to hiring top talent.
58% of employers say that they struggle to meet candidate expectations when it comes to salary, while half (50%) report shrinking hiring budgets among the challenges they currently face.
In addition to this, there are various components driving hiring costs for employers during the recruitment process. These include:
- Onboarding and training (20%)
- Advertising (14%)
- Background checks and assessments (13%)
Low-quality applications
An inefficient hiring process is another factor creating significant barriers for employers in their efforts to onboard talent.
50% of employers believe that a lengthy hiring process has been among the top challenges they’ve faced in the past three months. While this represents a drop from 57% recorded in the previous quarter, this still indicates that considerable numbers of employers are struggling with quick and efficient hiring.
This correlates with the fact that 85% of employers state that they experience challenges related to poor-quality applications for candidates. These can stem from:
- Candidates with irrelevant experience
- Incomplete submissions
- Mass applications with minimal effort
Key recommendations for employers
To stay competitive in a tightening labour market, businesses need to adopt a strategic approach to recruitment. From refining hiring processes to improving retention strategies, taking proactive steps can make a significant difference in securing top talent.
Let’s explore some of the steps employers can implement for a competitive edge moving forward in 2025.
1. Streamline recruitment processes
Hiring is gaining momentum, with businesses planning to grow their workforce in the next quarter and more have already increased their hiring over the last 3 months.
As finding candidates with the right skills remains the biggest obstacle to hiring success, recruiters need to work to refine their approach to talent acquisition. This can start by ensuring the following:
- Job advertisements are targeted and effectively reach suitable candidates
- Application processes are simple, reducing barriers for skilled applicants who might otherwise avoid applying
- Compensation offers remain competitive, reflecting market rates and candidate expectations as much as possible
2. Benchmark salaries and benefits
With as many as 1 in 4 employees moving on in search of better opportunities elsewhere in the first quarter of the year, competitive compensation and opportunities for future career development are both essential to attracting and retaining talent.
With this in mind, employers should consider focusing their efforts on:
- Conducting regular salary benchmarking to help them stand out in a competitive landscape
- Providing clear paths for progression and succession to improve retention and appeal to ambitious candidates
- Investing in learning and development initiatives to upskill existing team members and showcase their commitment to long-term employee progression
Ensure your compensation hits the mark with our 2025 UK Salary Trends Report
3. Improve hiring efficiency
While 68% of recruiters feel confident in their hiring prospects, 60% are grappling with tighter budgets and 59% feel pressured to fill roles quickly, making efficiency key to a successful long-term approach.
To try and address these challenges, businesses can:
- Utilise AI-driven recruitment tools to automate candidate screening and selection
- Optimise job advertising to reach only the most relevant candidates
- Work with partners like Totaljobs to streamline hiring and reduce costs
Totaljobs – Your hiring solution partner
Work with an industry-leading hiring solutions provider that understands your challenges and can help you find the skilled talent you need.
Part of the global recruitment technology company, The Stepstone Group, Totaljobs is a cutting-edge recruitment solutions partner whose goal is to find the right job for everyone. Find the right people for your business by reaching wider talent pools, increasing your brand’s visibility, and maximising your hiring budget.
About the research
All figures, unless otherwise stated, are from a survey conducted with Opinium Research. Total sample size was 1,000 HR decision-makers across the UK. Fieldwork was undertaken between 14th and 20th March 2025. The survey was carried out online.