Labour Market Watch – What the Numbers Really Mean for UK Employers
The latest labour market data reveals a mix of challenge and opportunity for UK employers. Here’s what you need to know and how to prepare.
According to the Office for National Statistics (ONS), UK unemployment rose to 4.4% in the three months to May 2025; the highest level in over two years. The increase is most evident in sectors such as tech, logistics, and manufacturing, where automation and AI continue to reshape demand for labour.
Despite the rise in unemployment, the market remains tight in many regions and sectors. Wages are still climbing, with average earnings increasing 6.2% year-on-year, outpacing inflation for the sixth consecutive month. This puts ongoing pressure on employers to remain competitive with pay, especially for high-demand roles.
What This Means for Employers:
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Pay Pressures Will Persist
Skilled temporary and specialist workers will continue to command higher rates, particularly where shortages persist in areas like construction, warehousing, engineering, and IT. Benchmarking your pay against current market rates is essential to attract the talent you need.
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Regional Workforce Insights Matter
National trends don’t always tell the full story. In some areas, local unemployment is much lower, making it harder to fill roles. Accessing up-to-date, granular data on job demand and candidate availability is key to successful hiring strategies.
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Flexibility Is a Competitive Advantage
With candidate expectations shifting, employers offering flexible hours, hybrid models, or even condensed workweeks are more likely to attract top-tier talent, particularly in competitive sectors.
How Acorn by Synergie can help
We provide clients with access to:
- Real-time local labour market data.
- Industry-specific salary benchmarks.
- Workforce planning support across temporary and permanent recruitment.
If you're reviewing your hiring strategy or preparing for Q4 demand, let’s talk. Our local insight and national reach mean we’re ready to help you make confident decisions in a changing market.
Contact our expert, Micheala Possnett today to request a free workforce insights report.