UK Hiring Trends Report – July 2025

UK Hiring Trends Report – July 2025

At ARU, we understand the complex hiring landscape facing UK businesses in 2025. ARU Temps are here to help SMEs unlock the potential of student and graduate talent and support recruitment activities in a shifting market.

1. The UK labour market snapshot 📸

The employment landscape in the UK is evolving rapidly:

• 📉 Hiring slowdown: Permanent roles have seen eight consecutive months of decline
• 📈 Unemployment at a 4-year high (4.6%)
• ⬇ Payroll shrinkage: Largest drop in employee payrolls since 2020 (that’s right, since the GLOBAL PANDEMIC. Yikes!)

Insights: While candidate supply is increasing, many businesses are cautious to hire due to rising National Insurance, wage thresholds, and broader economic pressure.

2. The future of work: AI & Automation 🤖

• 51% of companies prioritise AI investment over hiring
• 30% of UK employers are using AI in recruitment
• 46% of job seekers use AI to write applications

⚠️ Employers (and recruiters like us) report inconsistencies in AI-written applications. Beamery found that 9 in 10 employers encounter discrepancies during candidate screening.

Insights: Human authenticity is still critical. Be cautious of AI overreliance - focus on genuine engagement and soft skills.

3. Skills in demand (and decline) 🧠

In demand:

• Cybersecurity
• AI & machine learning
• Green tech
• Human-centric skills: creativity, communication, adaptability

In decline: Hard technical skills like coding are being automated.

“...hard technical skills like coding and analytics are on the way out [to be replaced by a new] ‘innovation economy’. The new in-demand skills are our core people skills: communication, creativity, compassion, courage and curiosity - these are what make us most human.”

Aneesh Raman, Chief Economic Opportunity Officer - LinkedIn (Recruiter magazine)

What employers are doing:

1. Embracing skills-based hiring where the emphasis is on soft skills and cultural fit rather than qualifications.
2. Prioritising on-the-job learning to recruit the right cultural fit then upskilling to cultivate the required expertise.
3. Developing leaders’ change management skills to effectively and efficiently navigate teams through AI led adaptations to workload, role responsibilities and productivity.
   
   

4. What jobseekers want 💡

The most attractive employers offer:

• 💼 Flexibility - Remote/hybrid roles get the most applications
• 📈 Career development - Growth opportunities and training
• 🌱 Sustainability - Transparent and ethical operations
• 🌟 A strong employer brand - 88% of candidates research companies before applying
  
  

5. Graduate salaries 2025 💷

The most recent reliable data regarding average graduate salaries in the UK is from the HESA report informed by data gathered in 2022! Although only published last year, it seems a bit out of date to be referring to this in a 2025 report. So, we asked  AI to scour the internet for current graduate vacancies within various industries and calculate the average advertised salaries. Here is a snapshot of what it found:

Note: London roles typically add a 10–25% salary uplift

Insights: Use this information as a guide only when pitching salaries for your entry level/graduate roles and remember to consider variables such as location, role responsibilities and benefits package.

6. ARU recruitment solutions

Whatever the market is doing, you can rely on ARU to thoughtfully plan a suite of services to assist you. There’s something to suit all businesses in their growth journey and we can’t wait to work with you:

📂 Live Briefs – Collaborate with students through course embedded project work 

🎓 ARU Internships – Short-term student hires to build your future workforce (some match funding opportunities available)
🏫 Placements – Bring in new ideas and additional resource whilst building a pipeline of student talent

🔍 ARU Temps – Flexible, low commitment access to mouldable student/graduate talent and experience hires

🎤 Student Engagement – Connect with future student hires through on-campus careers fairs, mentoring schemes, and employer talks. Help shape future graduate talent and inform curriculum relevance at Employer Advisory Forums.

📚 Degree Apprenticeships – Attract new skills, energy, and diversity whilst developing and retaining existing staff

Key Takeaways:

1. Stay agile – Skills-based hiring broadens your candidate pool and on the job training promotes development.
2. Build your brand – Showcase your purpose, people, and progression to attract the right talent.
3. Be flexible – Offer remote/hybrid roles and consider temp/project work where possible.
4. Tap into universities – Interns, temps and placements offer low-risk, high-return recruitment
5. Get support – ARU are here to help!

 For tailored advice and to connect with the right talent, contact:

Laura Kendrick – [email protected] | 01245 683616
Business Development Manager – ARU Temps

Sources: BBC, The Times, Reuters, Beamery, HR Review, Gov.uk, Recruiter magazine, LinkedIn, Four Talent, TechnoJobs, FT, Save the Student, Target Jobs, Prospects, HESA